How to claim TPD insurance: a step-by-step guide

In life, unexpected challenges can arise when we least expect them. From serious illnesses to life-altering injuries, the impact can be immense, not just physically but also financially. That's where Total and Permanent Disability (TPD) insurance comes into play. Worried about the aftermath of a debilitating event? You're not alone.  

We're all in a bit of a pickle when it comes to figuring out how to deal with the money stuff in tricky situations. So how do you go about taking out and claiming on a policy? In this guide, we'll walk you through the ins and outs of TPD insurance and how to make a claim so you can take control of your financial future with confidence and peace of mind.

So, what exactly is TPD insurance? 

TPD insurance gives you a lump sum payment if you get seriously sick or injured and can't work anymore. You can use this cash to cover medical bills, get treatments, and keep things ticking along even if you can't earn. 

According to ASIC, heaps of super funds include TPD insurance automatically – like around 72% of Aussies are sorted in some way. But is that enough? Many folks reckon it's worth grabbing extra cover to make sure they're fully looked after. 

How does TPD insurance work for you? 

Different insurers offer different options. Depending on who you're getting your life insurance from, you might have the chance to tweak your policy to fit you just right. With TAL, you could snag cover up to $3 million. But, there are some rules depending on your job, age, and if your policy's tied to something else. You can pick between stepped or level premiums, and updating your TPD cover is easy-peasy. Just give it a tweak when your life changes – like tying the knot or welcoming a little one. 

Oh, and heads up: if your TPD insurance is part of your super, you might score some tax deductions on the premiums. 

How do you claim your TPD insurance? 

First up, you'll need to follow a few steps to get it sorted. But don't worry, you won't be flying solo. You'll get your very own claims consultant to guide you through the whole shebang and field any questions you might have along the way. 

Steps for claiming TPD may include: 

1. Check your policy: First things first, understand what your policy covers. You might need to prove that you're unable to work due to illness or injury. Depending on your policy, you might also need to show that you can't switch to a different job. Your dedicated claims buddy will help you through this, outlining exactly what you need. 

2. Get that claim in: You've got options here - phone, email, or snail mail. 

3. Get your docs ready: Gather up your personal deets, medical info, and financial documents. They'll need to know it all to process your claim smoothly. 

4. Time to wait it out: How long it takes to assess your claim varies based on factors like its complexity and the info needed. While simpler cases might wrap up sooner, generally, you're looking at a 6 to 12-month waiting game.

Keep it cool and keep those docs handy, and you'll be on your way to getting the support you need. 

Getting your claim sorted pronto is a big deal for us, because we get it, it's a big deal for you too. Whether you snagged your insurance policy straight from an insurer or through a financial adviser, when the time comes to claim, hit them up or just shoot them an email.

Now, onto the not-so-fun stuff. Denials happen, but knowing why can help dodge 'em. Here are some reasons why your claim might get the red light: 

• Maybe there's a little tiff over the evidence you've provided. 

• You might not meet the policy definition laid out in the Product Disclosure Statement (PDS). 

• There could be a work history checkbox you forgot to tick. 

• Policy going inactive due to missed premiums or lapses. 

If your claim gets knocked back, it's often due to missing evidence or details in the claim form. So, double or even triple-check that form to ensure you've spilled all the beans. Remember, there's a legal duty to take reasonable care to keep things factually spot-on, so always tell it like it is. 

Do you reckon TPD insurance is worth it? 

Just like any insurance policy, it's a bit of a thinking game. Picture this: if you couldn't bring home the bacon due to an illness or injury, how would your squad cope financially? Think about your usual expenses – like keeping a roof over your head, paying off the mortgage, covering medical bills, and squirrelling away for your golden years. 

Now, TPD isn't the only horse in the race. You've got private health insurance for medical bills, income protection or life insurance to prop up your family financially if you're out of work. But TPD? It's like an extra blanket of protection. 

Understanding your expenses, what other insurance options are out there, and whether your fam can lend a hand will help suss out how much TPD cover you need. After all, financial peace of mind is key so you can focus on numero uno – your health and living your best life. 

Last financial year, TAL paid a whopping $3.5 billion in claims. Top reasons for claims included cancer, mental health issues, injuries, joint pain, and heart problems. Nearly half of Aussies will face a mental health challenge in their lifetime, and last year, TAL covered 19% of all claims for mental health conditions, with 28% wrapped up in TPD insurance. Plus, musculoskeletal and connective tissue covered 11% of claims, with 30% under TPD. 

When health hiccups happen, having a financial safety net can be a real game-changer.

Here's what to do next: 

1. Get in touch with your financial adviser or insurer - they'll hook you up with a claims consultant who'll have your back through it all. 

2. Scope out your cover - give that PDF a once-over to suss out any fine print, exclusions, or conditions. 

3. Get your docs in a row - gather up your personal deets, medical records, and financial info. 

4. Sit tight for the verdict - your claims consultant will keep you in the loop and give you the lowdown on the outcome as soon as they can. 

5. Cash in - once your claim gets the green light, it's payday!