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Understanding the differences between TPD and other disability benefits can be tricky, leaving many unsure which benefit is right for them and what claim they should make when they are unable to return to work due to a disability. Today, we are here to help you better understand your options, walking you through the differences between TPD and other disability benefits so that you can make the right choice for you.
What is TPD?
TPD or Total and Permanent Disability Insurance offers cover if an injury or illness prevents you from working again. It is often part of a Superannuation Insurance policy. It could award you a lump sum payment to help with the cost of medical bills, lifestyle changes to help you cope with your disability, or to cover daily living expenses.
Most people have insurance through their superannuation without even realising, but it is always best to check. You should also check what your policy covers. Some policies cover if you are unable to work any job, while some will only provide cover for your specific job.
What is the difference between TPD Insurance and Income Protection Insurance?
TPD and Income Protection Insurance are often confused, but they are distinct. Income Protection Insurance acts as an income replacement payment, covering a percentage of your pre-disability salary. It offers payments while you recover, but is more suited to temporary injuries and illnesses.
TPD, however, will pay a lump sum after a total and permanent illness or disability, allowing you to use the payout for any purpose. You don’t need to use the money solely for replacing your wage or covering medical costs, but it can be used for these if needed.
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TPD vs Workers Compensation
Workers’ compensation is a scheme where you can access medical and financial support if you are injured at work or become unwell due to a situation at work. It is typically only used for work-related injuries or illnesses, whereas TPD does not necessarily apply to work-related injuries.
If you are injured or become unwell as a result of your employment, you will need to complete a workers’ compensation claim, submitting it to your employer or their insurer. These claims are usually paid out faster than TPD claims, providing you with the money for medical bills or to compensate for your loss of earnings. If you are injured at work and left permanently disabled, you can make a workers’ compensation and a TPD claim, ensuring you get the money you deserve.
TPD vs Disability Support Pension (DSP)
The Disability Support Pension (DSP) is a government payment made to individuals with a permanent physical, intellectual, or psychiatric condition that prevents them from working more than 15 hours a week. To qualify, you must prove your condition and meet non-medical requirements, including income, age, assets, and residency requirements. DSP eligibility depends on your medical condition, which the government must assess and verify. TPD, on the other hand, is an insurance claim based on the judgment of a medical professional.
TPD will award you a lump sum payment for your disability, while DSP provides ongoing payments as a government benefit paid directly to you.
How to decide which benefit is right for you
Deciding which disability benefit is right can be tricky, especially if you are unsure of your eligibility. TPD should be considered as a long-term solution if you have a permanent disability or illness. In temporary situations, income protection insurance is a better choice to consider.
If your injury or illness is work-related, then filing a workers’ compensation claim is the best solution, but you can also claim TPD if the work injury or illness is permanent, awarding you with a lump sum. If you need a regular income, then income protection insurance is the better choice. It is essential to consider your specific situation to determine which claim is most suitable for you to make.
Speak to a TPD lawyer today
Making TPD claims can be daunting, especially if you have never made a claim before. A lawyer can help you, using their knowledge of disability claims to ensure the best chance of your being approved. TPD is known for being tricky to claim for, but with an experienced lawyer on your side, you don’t have this worry. Smith’s Lawyers has a team of expert lawyers with years of experience dealing with TPD and can help you secure the claim you need to cover your medical bills and alleviate any financial burdens. Contact them to see how their TPD claims lawyers can help you.
