Australians risk missing out on millions of dollars of potential benefits due to a lack of awareness that total and permanent disability cover (TPD) is a feature of most superannuation accounts.

A survey of 1047 people by lawyers Slater & Gordon has found 47% of Australians have not heard of TPD insurance cover in superannuation and 44% don’t know if their super fund covers them for TPD.

Awareness is lowest among younger people, with 63% of those aged 18-34 not knowing if their fund covers them for TPD and 61% having no awareness of the cover.

Older people are more aware, with 64% of those over 55 knowing of the TPD coverage in their fund.

Knowledge of the detail is low, with only 24% realising that many super funds will make TPD payouts for those who still can work but who no longer can fulfil their former roles after injury or illness.

Only 35% understand that non-work related injuries or illness are covered by TPD insurance and 29% know that most super funds automatically deduct TPD premiums from members’ accounts.

Slater & Gordon Superannuation Practice Group Leader Dina Tutungi says the survey results “clearly point to the need for some greater education around these issues”.

“We would urge all Australians with superannuation to check their statements to see if they are covered,” she said.

People who have not claimed on TPD when entitled to do so can claim retrospectively.

“We’ve done that for people where they can show they have been totally and permanently incapacitated,” Ms Tutungi told insuranceNEWS.com.au.

“You need to lead medical evidence to back it up.” 

She says most TPD policies offer coverage of between $10,000 and $100,000, with premiums between $50 and $480 a year for most Australian workers.