What is Total and Permanent Disability?

Total and Permanent Disability

In case of impairment, those who are covered with a TPD insurance may be awarded lump sum compensation to ease their monetary loss due to lack of earning capacity. Total and Permanent Disability Insurance in Australia is generally provided by the superannuation fund and the extent of the compensation may differ as the policy and the premium might be slightly modified having regard to the risk assessment of the insured person. However, your entitlements will be outlined in your policy and the risk assessment process can only apply before being insured.

The extent of TPD insurance

Each TPD insurance policy might include dissimilarities and higher premiums having regard to the medical history and work history. The extent of insurance is likely to differ between the type of insurance and the insurer. Generally, TPD is acquired from a superannuation fund, however, can also be bought separately from an insurance provider. Which is another factor to outline the entitlements and the benefits. While some policies may cover the insured with more restricted benefits, the others might cover with lack of capacity to perform daily exercises. As every insurance has its own variables, you should request a fine print of your policy which will outline the entitlements.

What are the entitlements?

Mostly, TPD insurance either covers the insured for own occupation or any occupation and your entitlements will be based on the coverage and the insurance provider.

  • Own Occupation: If you are covered on your own occupation, you may be able to claim compensation depending on your capacity to perform your current profession. The advantage of own occupation coverage is if you fulfil the impairment degree outlined in your policy, no matter if you can work in any other occupation, you may still receive compensation.
  • Any Occupation: If you are covered on any occupation, the assessment will be based on your capacity to perform in any occupation related to your education, work experience and training.

Claim process

The assessment of total and permanent disability and the claim process might have to be supported with medical documents and statements. These might be information relevant to your medical condition, Medical Attendant’s Statement – MAS, maximum medical improvement and ongoing treatment, a death certificate if the incident led to death, certificate of releases by 2 different practitioners and documents relating to your work experience, pre-injury income and education.

In the event of permanent impairment, superannuation benefits may also be awarded in addition to TPD content, however, this is mostly optional, and an early withdrawal might affect the total amount that might be available upon reaching retirement.

Should I hire a lawyer to claim TPD?

It might be very beneficial to work with a TPD lawyer in Australia as the extent of compensation and entitlements are likely to vary between insurance providers and the policy. To evaluate what is to your benefit and fully understand your entitlements, the process should be managed by a professional. TPD benefits should be claimed to ease your financial difficulties and it is best to do it with a professional as maximum effort should be given to get the best result. Permanent impairment is a sensitive situation that should be taken care perfectly to minimise future financial risk. Individual representations might lead to adverse outcomes due to insufficient knowledge of the process. If you hesitate to hire a lawyer due to financial difficulties, the cost of a lawyer is nothing compared to the amount of compensation you may receive with professional support and extensive knowledge of the lawyer. Your lawyer will set their aims on the highest possible compensation to secure you and your family’s future.

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