Insurance can be a complex matter. If you are diagnosed with a terminal illness and your doctor has suggested that you are unlikely to live beyond two years, one of the big questions that might come into your mind is whether you will receive an insurance payout for this reason.
However, some processes must be followed for making this claim. This article discusses some of those steps to claim a TPD or total permanent disability payout from your insurer – alternatively known as disability insurance.
What is TPD Insurance?
Total & Permanent Disability means – according to AIA – “that you cannot work at any occupation where you are reasonably qualified by education, training or experience.”
TPD insurance is an important form of insurance to have if the worst happens and you cannot work for a significant period due to illness or injury.
Disability claims cover individuals with one or more disabilities considered life-changing/permanent, thus putting them at long-term risk of being unable to work again.
Some examples may include strokes, cancer, heart attacks, multiple sclerosis, paralysis, etc. Such conditions would generally prevent you from working in your previous profession without assistance in some way, shape, or form.
How Much Does TPD Insurance Cost?
Premiums for this form of insurance vary depending on the insurer, the type of TPD claim you are looking to make, and your circumstances. One of the most important things to note is that you should weigh up policies with an insurer that offers cheaper premiums to ensure you are fully covered.
If there is any doubt or confusion about qualifying for a cover, then it is best to not apply. A good rule of thumb is seeking out policies that allow you to pay up-front in one lump sum. This means that instead of making monthly/annual payments, you make one payment upfront that covers your entire premium.
What Are The Documents You Need To Qualify For A TPD Claim?
When making a total permanent disability payout claim, you must present your insurer with certain documents. This documentation typically includes the following:
– A letter from your general practitioner (GP) confirming that you are unable to work at your occupation due to your disability;
– Medical reports or certificates detailing any diagnosis or treatment received;
– Any other medical reports/certificates produced by specialist doctors who have examined you and confirmed whether or not you can return to working in your chosen profession;
– Any additional information which would support the fact that you cannot work at all – e.g., statutory declaration;
What Is The Claim Limit?
You can claim this amount per payout, and it will generally be stated in your TPD insurance policy. Some insurers may have a limit on how much they allow their clients to claim.
Other providers may choose not to set a per-claim limit. In either case, you should check with your insurer before submitting your documents, as there are implications if you go over this limit.