TPD claim payouts are awardable for people who are unable to work due to an injury or illness through superannuation insurance funds. Since the legal procedure of TPD claims are complex, claimants tend to work with an experienced TPD lawyer to get what they are entitled to within their policy. However, do they know how much lawyers charge for TPD claims?
How does TPD insurance work?
TPD refers to Total and permanent disability; it is a type of insurance that pays a lump sum payout in case of being unable to work. TPD claims can be made regardless of the injury or illness type, depending on the policy as some have exclusions, but they may not be payable if the person is able to work for another job that they are suited by education, training or experience.
How to claim TPD insurance?
You can find the TPD insurance claim process steps below:
- Contact your superannuation fund(s) and request your superannuation insurance policy.
- If your superannuation fund(s) policy does contain TPD insurance, look into whether you are eligible for a TPD payout based on your cover, policy definitions and eligibility criteria.
- Collect medical evidence that supports you are permanently unable to work in a field that you are suited by education, training or experience or any other occupation, depending on the eligibility criteria in the policy.
Your evidence to support your claim includes but is not limited to medical reports from treating doctors, payslips, tax returns and sometimes clinical notes.
Can you work after receiving a TPD payout?
Although this may seem like an irrelevant question given the criteria to claim let alone receive a TPD payout is significant, we do see this question come up.
Even though the main criteria of TPD is that you are medically unable to work and most people unfortunately who claim TPD never return to work, there is nothing that prevents you from returning to work if you get better enough to work.
We have seen cases whereby a person through medical treatment or through looking at another type of work has bounced back and started working again.
How much do TPD lawyers charge for TPD claims?
The legal costs of a TPD claim will depend on what law firm you are planning to work with, and other expenses such as medical reports and other evidence. However given the scope of a TPD claim and our experience, what we agree on at the start is what we charge at the end of your TPD claim. Our costs are also on a No Win No Fee basis meaning you do not pay our costs until you are successful in your TPD claim. We also fund your claim by way of paying for medical reports and other evidence that may be required in support of your claim.
How do the TPD claim costs vary?
TPD claims costs can change according to the experience, reputation, and success rate of the lawyer. Even though lowering the TPD claim cost is understandable, it’s important to know what a TPD lawyer can provide for your future.
How much is a TPD insurance payout?
The TPD insurance payout amounts depend on the type of your insurance cover; you can examine your policy to know this information.
Generally, TPD insurance payouts are between:
- $70,000 and $200,000 for minor and moderate injuries;
- $200,000 and $800,000 for serious and severe injuries;
- up to $2,000,000 for extreme cases.
You can reach our TPD insurance lawyers to determine your eligibility to claim a lump sum TPD payout, income protection, accident and trauma or life insurance benefits.
Are TPD payments from superannuation insurance taxable?
- A TPD payout is not considered taxable income, however, withdrawing that money out of super before the retirement age is where the tax is calculated and applied.
- If you are older than 60 years of age, all withdrawals from super are tax-free.
- If you are younger than 60 years of age and between preservation age, you can draw $215,000 tax-free. If the amount exceeds $215,000, the rest of the money will be taxed at 22%
- If you are younger than the preservation age, there is not a specific answer for the taxable amount. A portion of your payout will be taxed at 22% while the rest will be tax-free.
How long does a TPD payout claim take?
All TPD cases are unique but generally, a TPD payout can be received approximately six months to one year from the date of lodgement. That’s when experienced TPD lawyers make the difference. They can make sure that all information is provided, and the application is made correctly to have the claim accepted.
Does a TPD claim affect Centrelink?
Yes depending on what you do with the TPD payment, such as use it towards your mortgage, pay expenses etc. otherwise it will be scaled upon Centrelink’s Income & Assets Test. This area can be complex please contact our TPD lawyers for more information.