Yes, a Total and Permanent Disability (TDP) payment is generally a one-time lump sum. However, some insurance plans provide flexibility in how a TPD payment is made. This may include partial payments, the option to create an income stream, and more.
At TPD Compensation Lawyers, we fully review your insurance cover and explain the TPD claim process from end to end. This includes how your entitlement may be paid if the application is accepted.
Learn what to expect from a claim for TPD payment. Call TPD Compensation Lawyers at 03 9966 7188 today for a FREE consultation. We serve clients in Melbourne and throughout Victoria.
How Does TPD Get Paid Out?
Just about any source you find online will tell you that TPD is paid as a one-off lump sum. While generally true, this information fails to account for the differences in insurance plans.
Per AIA Australia, a lump sum is the only TPD payment option for claims outside of super. If the claim is successful, the funds are paid to you directly.
However, the majority of Aussies have TPD cover through superannuation insurance—usually through an employer. It is crucial to review the terms of the policy. A TPD payment through super may be made in the following ways:
- Lump sum payment: This is the option used by most super insurers. Once an application is accepted, the entire benefit is paid into your superannuation account. Funds can be accessed without having to pay taxes once you reach the preservation age.
- Read More: Does a TPD Claim Come Out of Your Super?
- Income stream: Once a TPD claim is accepted and the money is added to your account, some super funds allow you to start receiving payments on a regular basis. This is known as a super income stream, and it can be useful for helping with medical bills and day-to-day expenses.
- Partial payments: Some insurers’ TPD policies provide partial payment for certain qualifying situations, such as less serious conditions, the early phases of a disability, or loss of use of a body part that results in partial disability.
It is in your best interest to seek legal counsel when making a TPD claim. An experienced TPD lawyer has an in-depth knowledge of complex insurance matters and will be able to tell you (a) whether you are eligible for Total and Permanent Disability, and (b) how TPD is paid out if your application is approved.
How Much Is the Total & Permanent Disability Payment?
At TPD Compensation Lawyers, our goal is to maximise each client’s entitlement. Every claim is different, and we never take a one-size-fits-all approach to our legal services. Only by fully understanding your TPD cover and your unique circumstances can we accurately determine how much your claim may be worth.
For insurers, the most important question is whether you satisfy the policy’s definition of Total and Permanent Disability. If you meet the eligibility criteria, they will look at a host of different factors to assess the value of a TPD payment. This includes:
- How serious your injury or illness is
- Your age at the time of disablement
- The job you had prior to disability
- How long you’ve been unable to work
Another important consideration when evaluating TPD entitlements is the total value of your insurance cover. If you have multiple TPD policies and you meet the requirements for some or all of them, the total benefits to which you are entitled may be substantial.
Whether it is paid as a lump sum, income stream, or partial payment, a TPD benefit can provide critical support for people who no longer have a means of making a living. Our knowledgeable lawyers can help you prepare the application and navigate the TPD claims process so you get the full payout to which you are entitled.
Get the Maximum TPD Payment You Deserve
Insurance companies make it difficult to obtain Total and Permanent Disability benefits. Many people don’t even know they have this insurance cover, let alone what is involved in making a claim.
TPD Compensation Lawyers are well-versed in superfund insurance and Total and Permanent Disability cover outside of super. Our extensive knowledge and expertise enable us to provide superior representation throughout the TPD claim process—from the initial application to ensuring you get the maximum payment to appealing an unfavourable decision (if necessary).
Your initial consultation is 100% FREE. In addition, with our No Win, No Fee policy, you will not pay any fees until we secure a TPD payment on your behalf.
Learn How TPD Compensation Lawyers Can Help
Don’t be overwhelmed by the thought of lodging a TPD claim. We begin with a thorough review of your insurance cover and an explanation of your eligibility. If you decide to retain us, we will skilfully handle all aspects of obtaining the maximum payout for Total and Permanent Disability.