Yes, you may be entitled to claim income protection and TPD (Total and Permanent Disability) insurance at the same time. However, this will depend on the terms and conditions of your policy, as the claim criteria for each can be very different.
You can claim on income protection in the event of an illness, injury or partial disability that prevents you from working (either temporarily or permanently); the purpose of your income protection is to provide a regular source of income to cover your everyday living expenses.
The criteria for claiming on TPD is that you’ll need to be permanently disabled or incapacitated through an injury or illness (and unlikely to ever be able to work again); the purpose of your TPD benefit is to provide a lump sum payout to cover major expenses that occur from your permanent disability.
Because they both serve different purposes, the payout of TPD generally won’t cancel out your income protection claim. However, in certain cases, the insurer may decide to stop paying the claim for regular income protection, and instead agree to pay a lump sum amount.
Refer to your Product Disclosure Statement (PDS) to determine if you can claim income protection and TPD at the same time.