TPD Insurance Claims – Factors Considered When Assessing TPD Claims

TPD Insurance Claims

Total and permanent disability insurance is designed to provide financial protection in case the insured becomes permanently disabled and unable to ever work again.

When an illness or injury leaves you incapable of earning a living, the financial impact would be similar to what would have happened if the illness or injury resulted in death.

While life insurance covers your family in case you die, it will not pay out if you become permanently disabled. This is why a TPD insurance cover is vital as part of your financial protection against possible harmful outcomes.

Successful TPD insurance claims

A TPD insurance policy is only beneficial if you can make a successful claim in case of total permanent disability. Usually, a claim will be paid on your TPD insurance policy if you are unlikely to ever work again due to injury or illness based on the opinion of a legally qualified medical practitioner. In some cases, TPD insurance claims are fairly straight forward and it is quite obvious that you can no longer continue working. However, there are certain cases that are considerably more complex, especially when it is not clear whether you may be able to return to work in the future.

TPD definition

Success in making TPD insurance claims is largely dependent on the type of policy purchased. Different policies provide different definitions for total and permanent disability, with the two main types being the own occupation and any occupation TPD policies. Making successful TPD insurance claims for own occupation policies is considerably easier than for any occupation policies. This is because for own occupation policies, you only need to prove that you can never work again in the occupation you were in when you became disabled. For any occupation policies, you need to prove that you can never work in any occupation for which you are reasonably qualified click here to know more.

TPD insurance claims in super

If you take out an own occupation TPD insurance cover through your superannuation fund, you may have difficulty accessing your benefits even if your claim is successful. The same applies for any policy that does not have the any occupation TPD definition. This is because you need to satisfy the TPD definition in the policy as well as that provided under super law. The permanent incapacity definition generally aligns with that for any occupation TPD. If you do not satisfy this definition, you may not be able to access your benefits even if the insurer has paid out your benefits to the trustee of your super fund.

Other factors

TPD insurance is a difficult policy to make a successful claim against because it requires the greatest amount of evidence in your favor. Note that self inflicted harm is generally not covered in a TPD insurance policy. A waiting period may also be applicable in your policy, which would mean that you would have to wait a given period before you could make a claim. Premium payments would also have to be current for TPD insurance claims to be successful. Your financial advisor should be able to provide any information you may need in order to purchase an appropriate TPD insurance policy.

TPD insurance claims in super

If you take out an own occupation TPD insurance cover through your superannuation fund, you may have difficulty accessing your benefits even if your claim is successful. The same applies for any policy that does not have the any occupation TPD definition. This is because you need to satisfy the TPD definition in the policy as well as that provided under super law. The permanent incapacity definition generally aligns with that for any occupation TPD. If you do not satisfy this definition, you may not be able to access your benefits even if the insurer has paid out your benefits to the trustee of your super fund. Read: How to Identify Cash Loan Scams

Other factors

TPD insurance is a difficult policy to make a successful claim against because it requires the greatest amount of evidence in your favor. Note that self inflicted harm is generally not covered in a TPD insurance policy. A waiting period may also be applicable in your policy, which would mean that you would have to wait a given period before you could make a claim. Premium payments would also have to be current for TPD insurance claims to be successful. Your financial advisor should be able to provide any information you may need in order to purchase an appropriate TPD insurance policy.