The unfortunate crossover is that the Loss of Income insurance, which is intended to provide you with (usually) 70-75% of your income if you are temporarily (Ie not totally and permanently) prevented from earning your usual income, is allowed to be taken out as a policy with a term out to your retirement age (if you wish to pay such a premium). A lot of people have LoI insurance. I used to have it, because that policy would kick in after 30 days, and my ability to access my super in event of hardship would not kick in for 90 days, and I needed something to cover the gap. When my Insurer altered the conditions to a 90 day waiting period, I dropped it as I was paying for no additional benefit I wasn't getting through my super. I also have TPD provisions in my super, which kick in if I can no longer work ever. They are two different things.

The question is whether this information was readily available in 2014 and whether that mattered.

If there was a good case it is my opinion that AIPA would have run it in the courts because it affects a lot of Qf pilots.

The Qf mainline LOL coverage is one such offsettable amount.
I'm not sure whether or not payment of total and permanent disablement benefits are at the discretion of the Trustee (the Board) or not. I know the death benefit is discretionary.

You can have two (or more) different life insurance policies, and they can all pay in full if you die, provided all the terms, conditions and disclosure conditions have been met.
Asset insurance seems to be different. You can have as many different house/car/boat policies as you want to pay premiums for, and claim on all of them, but you must disclose this fact to each of them, and the total pay out from all of them will only be to the value of your house/car/boat, ie they will all offset against each other.

You still haven't addressed post #37 champ.