Getting a TPD claim isn’t as easy as it seems. Mere qualification for a claim does not guarantee an easy process. There are many procedural intricacies that one may not know of that can hinder smooth processing. So, a thorough application that clearly details why you qualify for the claim is essential for building a strong case.
Most valid TPD claims get rejected by insurers since the applications aren’t comprehensive, making the claiming process extra tedious. Our guide will take you through 6 useful tips that will help you get a successful TPD claim.
1. Qualifications
A TPD insurance claim is a lump sum of money one is given if they suffer a serious injury or illness due to which they can no longer work. Since insurance companies want to make sure that the disability, illness, or condition is permanent and debilitating before awarding a huge sum of money, the approval process can get complex and lengthy.
To qualify for TPD insurance, you must have been off from work for about 3 to 4 months due to illness or injury, with no intentions of returning back. While this is the general criteria, different policies have varying provisions and rules. You need to check the claims you are eligible for before applying. Oftentimes people get overwhelmed with confusing legal jargon and end up applying to the wrong claim. To avoid this, consider hiring an expert lawyer who will help you through each step of the process.
2. Procedure
The claim filing procedure is known to be a strenuous and lengthy one hindered by many small steps that can complicate the situation even more. To get through the application process successfully, understanding each stage of the claim filing process is essential. The steps can be broadly categorized into two parts which we will discuss next.
3. Application Preparation
Step 1: Contact the insurance company that you wish to file a TPD claim and find out what basic evidence you will need to present. Claim teams will generally walk you through this process and you will soon be appointed a case manager.
Step 2: Submit your claim application, including any supporting documents and files. Medical reports about your condition are treated as evidence and majorly influence the course of TPD claims application assessment. Other documents such as employer information and other relevant statements need to be submitted. Your lawyer will help you with the paperwork and once everything has been handed over, you will be kept informed about the application progress and if anything else is required from you.
4. Application Review
Step 3: Your claim is assessed, and our insurance provider will determine whether you are an eligible candidate or not. It might so happen that extra documentation will be asked from you, such as additional medical records or second opinions. Then an initial decision will be made that indicates whether your claim has been approved.
Step 4: If your claim is rejected, you may request to submit further documentation in your support or can apply for a repeal. If your claim is accepted, then you will be insured and payment details will be finalized.
5. How does a Claim Get Approved?
The right approach to getting a TPD claim approved is to provide as much information as possible and actively collaborate with your insurance provider. You may be required to meet post-injury or post-illness medical requirements. Your insurance company, for example, may require continual physical therapy as well as specialist appointments. When filing a TPD claim, keep in mind that you have a duty of disclosure. That means you must provide the company with any information pertaining to the outcome of your claim.
6. Taxes and TPD Claims
If you have TPD insurance through your super, the benefit is not taxed when first credited to your super account. Conversely, if users withdraw money from their superannuation account before the age of 60, it is liable for tax. The taxable income rate on withdrawal can range from less than 1 percent to more than 18 percent. A person with multiple TPD claims may have a different effective tax rate on each one of them. If you obtain TPD insurance through an insurer, the benefit is not taxed. Because your premiums were taxed, you will not have to file a tax return on the remuneration.
The TPD claim process can be as easy or hard as you want it to be. The key to a successful claim is extensive research and thorough application preparation. Always consult a professional who can assist you with their expert knowledge. And keep the tips mentioned above in mind for they will surely help you throughout the process.
