Lump-Sum Total and Permanent Disablement (TPD) Cover is an alternative to receiving regular benefit payments.  Instead of indexed monthly IP benefits you can apply to have Lump-Sum TPD Cover with your Death Cover.

Lump-Sum TPD Cover may provide you with a lump sum if you're permanently unable to work and you meet the relevant definitions.

In addition to Lump-Sum TPD Cover, you can also have short-term IP Cover (providing IP benefits for a two-year maximum period). Long-term IP Cover cannot be combined with Lump-Sum TPD Cover.

Lump-Sum TPD Cover at a glance

• Lump-Sum TPD Cover is offered in units of cover to age 70
• HESTA's basic cover Options 2 and 3 include two units of Lump-Sum TPD Cover
• Cover costs $0.85 per week under the 'any-occupation' definition of TPD, or $1.00 if you are accepted for the 'own-occupation' definition. 
• The cover under each unit of Lump-Sum TPD Cover is the same amount as each unit of Death Cover
• If you're joining the Industry Super Plan, you can apply for up to 6 units of Lump-Sum TPD Cover using the personal health statement on the New member application form.
• Your Lump-Sum TPD Cover cannot exceed the amount of your Death Cover
• If you have Death and Lump-Sum TPD Cover and you receive a TPD benefit payment from HESTA, any payment of the TPD benefit will reduce your remaining Death Cover by the same amount (perhaps to zero if your TPD payment equals your Death Cover amount) 
• Lump-Sum TPD Cover does not provide a benefit if you’re only partially or temporarily disabled
• Any payment of a terminal illness benefit will reduce your Lump-Sum TPD cover by a corresponding amount
• You can't combine Lump-Sum TPD Cover with IP cover except where you limit your IP benefit period to two years (Option 2 under basic cover)
  
  

Payment of lump-sum benefits is subject to preservation restrictions. Even if the Insurer pays an amount to HESTA under the ‘own occupation’ definition, we may not be allowed to pay the benefit to you until you reach your preservation age.

It’s important to consider the impact of insurance premiums on your retirement savings when you choose your level of cover.