What is a TPD claim?

Step one when filing for a TPD insurance policy lump sum payout: Hire a lawyer.

Your disability attorney can be critical to getting your TPD claim approved. They will know all the ins and outs of the process and can assist you in filing your claim, gathering all of the medical evidence required to support it, and presenting it in an understandable fashion.

In most cases, you’ll want to file your TPD claim as soon as your pursuit of all available and reasonable treatment has been completed and your condition has stabilised. If you have filed for mental health reasons, make sure you’ve had your medical records collected to show your diagnosis and the practical analysis of your case that led to a recommendation for an official TPD assignment.

Once your claim is submitted, you’ll typically have to wait six months to a year for it to be reviewed. If your TPD insurance claim is accepted, the payout will be made by the trustee in a few month’s time, and those funds will land in your superannuation account. If you have made a successful TPD claim, and TPD benefit funds have been transferred to your superannuation account, you have several choices.

You can leave the money there to accumulate with the rest of your super fund until you reach the age when you’d typically begin withdrawing it. Alternatively, you can withdraw part of it or the whole amount, without having to pay the penalty, if you are below withdrawal age. You may even be able to get the lump-sum payout from your compensation claim designated as a tax-free withdrawal.

If your claim is rejected, you shouldn’t give up hope. Many TPD claims are denied the first time around. You can appeal the decision and look for more evidence to support your claim of total and permanent disability and inability to work. If your disability has worsened since your original filing, you may start over with a new claim and your new documentation.

Payouts on TPD claims from superannuation accounts might be anywhere from $60,000 to $300,000. More hefty sums can be obtained from private TPD cover, depending on your plan. Usually, such claims are capped at between $3 million and $5 million.

Even with some of the largest claims possible, if you are fairly young a one-time lump sum payout for your disability may not be sufficient to meet the needs of your loved ones and yourself. You should see if you qualify for the disability support pension (DSP), as this can deliver ongoing support in the form of fortnightly payments.

You also might be able to file a workers compensation against your employer, if your accident happens at work or on the clock. There is a duty of care employers have to employees, and if that trust is broken and you suffer a serious injury, you had best try to recoup your potential future earnings.

DSP claims, TPD claims, and workers’ compensation claims are all technically under different verticals. You may be able to file all three if you have had the right kind of cover for long enough.