TPD Claims Process
The process for successfully claiming on your TPD insurance varies from insurer to insurer. The first step is intimately understanding your policy and the requirements within. You will likely have requirements around receiving appropriate medical care, following your medical advice, how many and what types of doctors you will need to have seen, the length of time you need to be unable to work before claiming, how pre-existing conditions are treated as well as the scope with which the insurer can assess your ability to work in other occupations. The process is unfortunately quite complex with numerous steps along the way. We are here to take the stress out of this, ensuring your claim is dealt with efficiently and fairly.
How To Handle A Rejected TPD Claim
Of course, there is no guarantee that your TPD insurance claim will be successful. Some find their TPD claim denied and they are unable to determine why this has happened. If you have had a TPD claim declined, the best thing you can do is seek TPD claims advice from an experienced TPD claims advisor. This will provide you with peace of mind that an objective expert has assessed your circumstances with respect to the relevant policy definitions. More information on rejected TPD claims can be found here.
The Amount You Receive through TPD Insurance
Naturally, most people are keen to find out how much they will get from their TPD claim. Well, this is something that can vary based on a number of factors. The level of cover that typically applies is the amount that you were insured for at the time of becoming disabled. Many policies that are provided by retail and industry super funds will provide varying level of cover you have based on your age. Typical retail insurance policies will only change in value at your request.
Is a TPD Insurance Payout Taxable?
TPD Insurance is only taxable when the policy is held within super or is an asset of a business (as part of a buy/sell or key person strategy). As the vast majority of TPD insurance in Australia is held within super, most claimants are required to pay tax on their claim. The amount of tax you pay on a TPD Insurance payout is variable and quite literally changes by the day. The key variables include the effective start date of the fund and the amount of days away from retirement age. The tax liability is calculated at the time of the claim being paid and will generally be withheld by the super fund at the time of releasing the funds to you.
How Long Will My TPD Claim Take To Be Paid?
Another thing most people are interested to find out is how long the TPD insurance claim is likely to take in terms of processing and payout. Again, this is something that can vary from one person to another but in general you are looking at a number of months before the claim is resolved and the payout made (with successful claims). Having TPD claims management experts on hand can help you to get a better idea of how long your specific claim is likely to take and can likely help to speed up the process for you.
How to Claim TPD Insurance?
Some people feel daunted by the TPD claims process, as it can appear to be quite complex and long-winded to those who are unfamiliar with making this type of claim. You will need to complete the necessary claims forms and provide medical evidence as requested by the insurer. There are also other documents you will need to provide. Unfortunately, the TPD claims process is generally slower than many other types of insurance claims and it can take a number of months to resolve. In addition, any issues with the documentation or claims forms can further delay the claims process leaving you waiting longer for your payout. This is why many people use the services of expert TPD claims advisors, as this minimises on the risk of any issues that could cause further delays. It also makes the whole claims process far simpler and more manageable. There are a number of strategies one can use to reduce your tax liability come claim time and this is something a financial advisor can guide you on.
When can you claim TPD Insurance?
As you may well already know, making a TPD claim has a number of components to it. A successful TPD claim revolves around the definitions of the policy in question. Typically you will be required to have been off of work for a period of 6 months and have confirmation from 2 of your treating doctors that you will be unable to ever return to work for which you are reasonably suited by way of education, training or experience. The administrative process can be quite cumbersome, particularly given you are going to have a number of other things on your plate at this point in time. Engaging a TPD claims expert will give you peace of mind that your matter is being handled by professionals, in an efficient manner.
What are the Most Common Reasons for Claiming TPD Insurance?
Although these TPD claims statistics are hard to compile due to privacy restrictions that are inherently associated with such sensitive data, Asteron Life has advised that in 2011 the most common reason for a TPD claim were:
- Musculoskeletal disorders – 43%
- Injuries from accidents – 17%
- Mental Health (Depression, Bipolar, PTSD, Anxiety) – 18%
- Cancer – 6%
- Nervous system disorders – 9%
- Other – 7%
Source: Asteron Life
Does TPD Insurance Cover Death?
Although TPD Insurance is often linked to life insurance, TPD Insurance itself generally does not cover death. TPD Insurance is designed to provide relief should you suffer an injury or illness that permanently impacts your ability to fulfill your typical daily duties, while still being alive. Some policies offer a small benefit in the event of death however the payment is often capped at a figure of around $10,000.