RMB Articles

TDP Insurance may solve your money problems

Posted 22-05-2019
Written by admin 101
Category Compensation

An injury or illness that prevents you returning to work can have devastating consequences for your financial as well as physical wellbeing. But as head of the Compensation Law Division at RMB Lawyers CHRIS SHEPPARD explains, help may be at hand.

Becoming injured or ill often means that your life gets turned upside down and it also brings with it the stress and worry as to your financial circumstances – particularly if you are unable to return to work.

Regardless of how you become injured or ill, you may be entitled to an insurance benefit you did not know about. 

Most superannuation funds have attached to them a type of insurance benefit known as a Total and Permanent Disability benefit.

Under Australian Law there are three main types and definitions of TPD Insurance:

  • Own Occupation TPD – where you are unable to work in your own occupation ever again.
  • Any Occupation TPD – where you are unable unable to work in your occupation and also any occupation that you are suited to via education, training or experience ever again.
  • Non-Occupational TPD – where you are unable to conduct two of five activities of daily living.

In order to qualify for a TDP insurance benefit you must generally satisfy the superannuation fund and its insurer that after being unable to attend work for three to six  months, it is unlikely that you will ever work again in paid employment for which you are suited by way of education, training or experience.

Even if you are able to return to some form of part-time work in reduced or suitable duties, you may still qualify for this benefit.

The benefits are generally worth considerable sums of money and are paid out as a lump sum.

However, it is important that you obtain expert advice before making a claim. 

The process of making a claim requires close consideration of the definition of “total and permanent disablement” which you are required to meet and ensuring that there is sufficient medical evidence to support the claim. You will need to provide evidence from two medical practitioners certifying that you will be unable to ever return to work in any occupation for which you are suited by way of education, training and experience.

RMB Lawyers has assisted hundreds of its clients to secure these benefits which often relieve significant financial pressure during times of hardship. If you think you may have a claim, please  contact us. We'll be able to help you via a quick phone call, or ask us a question via email.