Insurers we work with
The world of insurance can be complicated and daunting, particularly when you need to claim.
With so many different products on the market, all with different definitions and conditions – it can be a confronting experience.
Having TPD Insurance is a great place to start, understanding your cover and it’s benefits is even better.
TPD Insurance pays a benefit when you are Totally and Permanently Disabled which can mean many different things.
This type of insurance is there to provide you with funds should you be unable to work again, allowing you and your loved ones to maintain your lifestyle. It sounds simple, right?
Unfortunately TPD Insurance claims are often incredibly complex and have significant requirements that need to be met in order for a claim to be successful.
It is a process where things can go wrong through no fault of your own or the insurer and having an adviser by your side can ensure that things stay on track.
At a time where you are in poor health and grappling with a new way of life, leave your claim to the experts that do this all day, every day.
At Curo Financial Services, we offer a service to those have had their TPD claim rejected or they are looking to make a claim for the first time.
We handle the claims process from end to end, staying on top of all aspects of your claim to be sure it is dealt with in an efficient manner, allowing you to focus on your health.
We leverage our decades of experience and industry know-how to deliver outcomes that often far exceed the expectations of those we help.
Maximise your TPD claim payout by talking to an expert
The Requirements For A Successful TPD Claim
In order to successfully make a superannuation TPD claim, you will typically need to demonstrate that you, as a result of injury or illness, are unable to return to your work or any other work you are suited to by way of training, education or experience.
If a medical condition has stopped you from working for a period of around six months, and if unlikely to be able to do that type of work again for the same reasons, you may be able to make a successful TPD claim.
The above applies to an ‘Any Occupation TPD’ policy, that which is most commonly found through super.
Outside of Super you may well have an ‘Own Occupation’ TPD policy which only requires you to be unable to ever work again in the occupation you were in immediately prior to disablement.
As you can see, there are many things to consider and speaking to an expert TPD advisor will enable you to better determine the likelihood of success as well as providing you with information on what you need in order to make a TPD claim.
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.
Want to know how much you’ll get with your TPD claim?
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Frequently asked questions
TPD Insurance Claims: Who is Covered?
TPD insurance claims can be made by those who have a policy in place and who suffer a serious illness or injury that renders them unbale to ever return to work. TPD insurance is often held through superannuation, where the lump sum payable from a successful claim will be distributed to the fund before being distributed to the life insured. The money you get from your insurance makes it easier for you to manage financially given your inability to return to work and earn money due to your injury or illness.
What Does TPD Insurance Cover?
Simply, TPD insurance provides a benefit in the event that you become Totally and Permanently Disabled.
Totally and Permanently Disabled can mean a number of different things and it is ultimately dictated by the terms of your particular policy.
TPD Insurance provided by super funds will generally cover you in the event that you are unable to return to work in ANY occupation for which you are suited by way of training, education or experience.
These policies will generally have clauses that result in this definition changing should you take extended leave from work, move overseas or reduce to casual hours.
More comprehensive policies can cover you in the event that you are unable to return to work in the occupation you were in immediately prior to disablement, which removes any scope for the insurer to trawl through your education and employment history with a view to finding an occupation for which you might be suited.
With a wide variety of policy definitions available in the Australian market, it is crucial to understand exactly how your cover works and when it will pay out.
How To Make A TPD Claim through Your Super?
While superannuation funds do vary in terms of the quality of cover that they offer, most do include TPD insurance to some degree.
However, the level of cover varies from one policy to another, so it is crucial that you keep abreast of the amount that you have in place as well as how this will change over time.
If you need to make a TPD claim through your superannuation fund, it may be of significant benefit to get assistance from a claims adviser with experience and expertise in this matter.
This is because the process of TPD claims can be a lengthy and complex one for those who are unfamiliar with making this type of claim. An additional complexity arises when making a super TPD claim as there is an additional ‘layer’ of legislation involved.
TPD super claims need to be released by the trustee of the fund and approved by the insurer underwriting the fund.
Unfortunately this tends to delay the process.
A TPD claims advisor can take you through the process step by step, which makes things a lot less stressful because you have access to expert claims advice.
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:
- Mental Health (Depression, Bipolar, PTSD, Anxiety) – 25%
- Musculoskeletal disorders – 19%
- Injuries from accidents – 15%
- Cancer – 12%
- Nervous system disorders – 14%
- Other – 15%
Source: Financial Services Council
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.
General Advice Disclaimer
General advice warning: The advice provided is general advice only and in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.