TPD Claims: What Veterans Need to Know

‍What is a TPD claim?

TPD insurance is usually linked to a superannuation policy. A TPD claim is not decided by DVA. It is assessed by the insurer or superannuation trustee under the wording of the policy. Put simply, the insurer looks at whether the veteran meets the policy definition of total and permanent disability, often by considering whether they are likely to return to work that suits their education, training or experience.

This means a veteran may be eligible for DVA support but notmeet the test for a TPD claim. It can also work the other way around. A veteranmay succeed in a TPD claim even if their DVA claim is still being assessed. Thetwo claims can overlap because they often rely on similar medical evidence,work history and information about day-to-day capacity, but one decision doesnot automatically decide the other.

Common veteran claims often involve physical injuries, mental health conditions, degenerative sensory issues and chronic pain.

How do you make a claim?

The first step is to work out which superannuation and insurance policies may apply. This can include policies held while serving, as well as policies held after discharge. Medical records, DVA documents and employment records are usually needed to support the claim.

A strong claim requires clear evidence about the illness orinjury, how it affects the veteran’s ability to work and why the veteran meetsthe relevant policy test.

Are there time limits for making a TPD claim?

Usually, there is no strict time limit for starting a TPD claim. Even so, it is best to get advice and make the claim as soon as possible. Time limits can become important if the insurer rejects the claim and the decision needs to be challenged.

What can you receive if your claim is accepted?

The amount paid will depend on the insurance policy and thelevel of cover held by the veteran.

If the TPD insurance is held through superannuation, the insurer will usually pay the approved benefit to the superannuation trustee. The money is then credited to the veteran’s superannuation account. The veteran may then decide whether to leave it in super, withdraw some or all of it as a lump sum, roll it over to another fund or access it in another permitted way.

Tax can vary depending on the veteran’s circumstances. Ifthe benefit stays in superannuation, there may be no immediate personal taxpayable on the insurance benefit itself. Tax is usually more relevant whenmoney is withdrawn from superannuation.

This article provides general information only and is notlegal, financial or medical advice. Veterans should seek advice about theirindividual circumstances.