A serious injury or chronic illness doesn’t just cause physical pain; it also brings with it severe financial stress. While Total Permanent Disability (TPD) insurance was designed to serve as a safety net, a staggering number of Australians are unaware that they have TPD Insurance in Super, tucked safely in a retirement account they don’t realise they can access. With so many misunderstandings and misconceptions, many people are discouraged from pursuing legitimate claims and knowing the facts will improve Total and Permanent Disability (TPD) claims outcomes.
What Is a TPD Claim?
A Total Permanent Disability insurance claim is a lump-sum payout from your insurance provider. The most common form is Total Permanent Disability in super, though some people hold standalone policies. The lump sum is to support someone who has experienced a total and permanent illness or injury and cannot return to work. Policies vary, so check to determine whether yours covers psychological conditions as well as physical ones.
Why There Are So Many Misconceptions About TPD Insurance Claims
There are several reasons why misconceptions about TPD claims are so common.
- Legal jargon can be complex, and the policy wording can make it difficult to parse what they mean.
- While most people are familiar with workers’ compensation and it’s discussed when workers are inducted by a new employer, Permanent Disability Work Cover is less discussed.
- Seeking advice is good, but not when unqualified sources repeat the common misconceptions and deter you from finding out whether you are eligible.
- Many people assume that they can’t file a TPD claim if they are receiving Centrelink or workers’ compensation; you can claim for different compensation simultaneously.
As it is entirely separate from other forms of benefit, including workers’ compensation, you may be able to make multiple claims.
The Common TPD Claims Misconceptions
Misconception 1: I don’t have TPD Insurance
The Reality
Most Australians have TPD cover in their super fund, but don’t realise they were automatically enrolled. It’s not too late to look back at old policies to see whether you were covered at the time of your illness or injury.
How to Avoid the Mistake
Always review your superannuation policies (old and current) and call an experienced lawyer to help.
Misconception 2: My injury isn’t severe enough
The Reality
TPD isn’t based on the severity of your injury or illness, but rather your inability to work. Long-term repetitive strain injuries, chronic illnesses and diseases, and mental health conditions can qualify.
How to Avoid the Mistake
Don’t self-assess! Whether the condition is psychological or physical, if the condition prevents you from working, you need to seek a professional medical assessment.
Misconception 3: I have to be completely incapable of doing anything
The Reality
You don’t need to be unable to walk or bed-bound to succeed in making a TPD Claim; many illnesses and injuries qualify.
How to Avoid the Mistake
Every policy is different; check whether you are covered for any occupation or your own occupation. If it’s the latter, there is more wiggle room for the insurer to avoid paying out if you could work in another role based on your experience and education, while the former covers you if you’re unable to continue in the role you were doing.
Misconception 4: I can’t claim TPD if I receive other benefits
The Reality
You can receive your lump sum TPD payout, workers’ compensation, and disability support payments. It all depends on your individual circumstances and the wording of your policy.
How to Avoid the Mistake
Speak to a lawyer and discuss your route to compensation and which pathways you are eligible for.
Misconception 5: The claims process is easy
The Reality
It isn’t easy because insurers want to find ways to delay the payout or deny the claim altogether. The more documentation and medical evidence you have to support your claim, the more likely it is to succeed.
How to Avoid the Mistake
Engage a lawyer and ensure your documentation is consistent and in line with your policy.
Misconception 6: It’s too late to file a TPD claim
The Reality
You can potentially file a claim years after your illness and injury, as the deadline varies depending on the policy. However, the earlier you take legal advice, the better.
How to Avoid the Mistake
Never assume your time has run out; speak to a lawyer about what’s possible.
The Most Common Mistakes that Lead to TPD Claim Delays or Rejections
- Insufficient evidence
- Incorrect paperwork
- Misunderstanding of policy definitions
- Missed deadlines
How to Avoid TPD Claim Problems
- Carefully review your TPD policies
- Keep detailed employment records
- Track your medical and treatment history
- Seek legal advice
Legal Options
At AJB Stevens, we can review your TPD policies, determine eligibility, prepare and lodge your claims, gather employment and medical evidence, communicate with insurers and superannuation funds, negotiate on your behalf, and appeal rejected claims. While the process doesn’t have to be complicated, legal professionals are equipped to manage complex paperwork and policy documents. We’ll help uncover hidden coverage and find the best path forward to future-proof your financial health.
AJB Stevens provides compassionate, client-focused care, offering tailored legal advice and clear communication as we strategically prepare your claims. Don’t let a misconception prevent you from filing a valid claim. We can provide professional guidance and support.
Contact AJB Stevens today to schedule your free TPD claim review.
