Millions of Australians May Have TPD Cover in Their Super — And Not Know It

When illness or injury forces you to stop working, your super is one of the first places worth a closer look. The reality is that most super funds bundle in life cover and TPD insurance by default, and a number of them include income protection as well. Coverage of Super Consumers Australia research has highlighted that over a quarter of people either aren't sure whether they hold insurance inside super or can't say what their cover actually involves.

Set against an Australian population of 27.7 million as at September 2025, that uncertainty translates into a very large group of people who may be paying for protection they have never fully understood.

What does TPD cover in super actually mean?

TPD is short for total and permanent disability. As Moneysmart explains, this type of insurance can pay out a lump sum if illness or injury leaves you totally and permanently disabled. The idea is to help cover the things that don't stop when your income does — everyday living costs, outstanding debts, and medical or rehabilitation expenses where going back to work is no longer realistic.

Why it slips past so many people

Often it comes down to one assumption: because someone never signed up for a standalone policy, they conclude they have no cover at all. Yet super-based insurance frequently switches on automatically. Moneysmart notes that the majority of funds provide default life and TPD cover, and reporting on the Super Consumers Australia findings points to more than a quarter of members being unsure what, if anything, they hold.

A key prompt: over 25 with more than $6,000 in super? It's worth checking

This is one of the details people most often overlook. According to Moneysmart, if you were over 25, had a balance above $6,000, and were working and receiving contributions, there's a reasonable chance some default insurance — TPD included — was attached to your account. It isn't a guarantee, but it's a strong enough signal to look into.

Old accounts you've lost track of

Another reason cover gets missed is job-hopping over the years and losing sight of previous super accounts. The ATO points out that its online services let you trace your super and surface accounts you've forgotten or lost contact with, including lost member accounts and super the ATO is holding on your behalf.

Watch out: cover can lapse without warning

Timing matters, because insurance inside super doesn't necessarily stay switched on indefinitely. Moneysmart explains that funds will cancel cover on accounts that have sat inactive — with no contributions — for 16 months or more, and some apply additional rules to low-balance accounts.

How to find out whether you hold TPD cover

Moneysmart suggests the main ways to check are to:

• phone your super fund
• log in to your account online
• read through your annual statement and Product Disclosure Statement (PDS)

While you're at it, confirm:

• the type of insurance that applied
• the level of cover
• whether the policy was active at the relevant time
• whether any exclusions or definitions might affect a claim

A word on definitions

TPD policies don't all operate the same way. Moneysmart notes insurers apply different definitions of total and permanent disability — "own occupation" versus "any occupation," for instance — and that distinction can change how difficult a claim is to satisfy.

Signs it's worth getting your super reviewed

It may be time to check if:

• illness or injury has stopped you working
• your doctor has indicated a return to work is unlikely
• you're living with cancer, chronic pain, a serious injury, mental illness, or another significant condition
• you've moved between jobs and may hold old or forgotten accounts
• you're simply not sure what insurance sits inside your super

Where a Free Claim Check fits in

At CantWork, we help people work out whether there may be a life insurance claim or another support pathway sitting in their super.

We can help you:

• talk through your situation
• track down relevant super accounts, including lost or forgotten ones
• understand whether TPD, life insurance, income protection or early access to super might be worth exploring