How Mary received a $1M payout after struggling with illness - TPD Claim.
If you’re forced to stop work because of an injury, illness or mental illness, the future can look bleak as you figure out how you’re going to support yourself financially. And many Australians who can’t work are also faced with the prospect of supporting family. But the good news is, in Australia there’s a safety net that can provide you with financial security if you’re unable to work. The surprising fact is that many Australians don’t know about this safety net and fail to claim significant lump sums they’re entitled to.
The safety net is called total and permanent disability (TPD) insurance, and if you have superannuation, it’s likely you have TPD cover that you might not even know about. It’s this lack of understanding of TPD cover, combined with some insurers notoriously making the claim process arduous, that results in TPD entitlements going unclaimed.
There are, however, some incredibly positive stories that illustrate how TPD insurance can be a lifeline to Australians facing difficult times.
Mary was suddenly faced with the reality of her financial future – and as a single mum with two kids, it looked pretty bleak.
Mary was diagnosed with MS in 2015. Literally overnight her life became all about hospital visits and specialist appointments. But when she reached the point where she couldn’t work, Mary was suddenly faced with the reality of her financial future – and as a single mum with two kids, it looked pretty bleak. It was Mary’s sister who asked if she had TPD cover through her super. She’d never heard of TPD and had to look it up – and to complicate matters, she had multiple super policies. Mary literally had a box full of ten years of unopened mail from her super funds and was daunted by the prospect of going through them to work out what cover she had.
Jennifer successfully pursued all five claims for Mary, resulting in a payout of over $1 million.
Mary saw an ad for Law Partners when she was Googling TPD so she called them and spoke to Jennifer, a TPD claim specialist. Jennifer went through her super statements and worked out Mary had five TPD policies. Jennifer successfully pursued all five claims for Mary, resulting in a payout of over $1 million, which has been life-changing for Mary and her children.
Unfortunately, many Australians who lodge their own TPD claims come up against arduous claims processes, and claims are often withdrawn by people who are struggling with health issues and simply can’t face dealing with an insurer. According to a 2019 ASIC report* “Onerous and/or deficient claims handling processes can lead a consumer to withdraw a potentially valid claim.” The report further noted that: “12.5% of claims reported in the period or undetermined at the start of the period were withdrawn—a total of 4,365 claims.”
*ASIC REPORT 633 – Holes in the safety net: A review of TPD insurance claims (page 50).