How does rehabilitation benefit work in TPD insurance?

Many modern TPD insurance policies include rehabilitation benefits designed to help you recover and potentially return to work, even though the policy is for permanent disability. Rehabilitation benefits typically provide additional coverage (often 5-12% of your sum insured, capped at $50,000 to $100,000) for expenses related to vocational rehabilitation, retraining for alternative work, occupational therapy, physiotherapy and other physical rehabilitation, psychological counseling and support, home modifications to accommodate disability, and workplace modifications or assistive devices. These benefits are usually payable regardless of whether you ultimately receive a TPD payout - you can access rehabilitation support during the assessment period while your claim is being evaluated. The philosophy is that insurers benefit if rehabilitation helps you return to work (avoiding a full TPD payout), while you benefit from support to maximize your recovery and work capacity. Some policies provide ongoing access to rehabilitation services even after a TPD claim is paid. Accessing rehabilitation benefits doesn't automatically disqualify you from a full TPD claim - attempting rehabilitation and being unable to return to work can actually strengthen your claim by demonstrating the permanence of your disability. Rehabilitation benefits must be for approved services and usually require pre-approval from the insurer. Check your policy's Product Disclosure Statement for specific rehabilitation benefit terms and limits.