If I am under claim for income insurance with a well known Australian insurer (owned by an Australian bank), is there any reason why I may or may not be able to claim TPD through my completely arms length industry super fund as well? Specifically, would the income insurance company have a problem with this and/or reduce my income insurance monthly payout?
Alex in North Sydney
Top answer provided by:
Mish Blecher
Hi Alex,
Thanks for your question!
Generally speaking there shouldn’t be any issues making a claim on TPD, it be through industry funds or any other superfunds as this is a completely different insurance policy and is a lump sum payment as opposed to continued payments like income protection, meaning the insurance company shouldn’t be reducing the monthly ongoing payout.
However, please bare in mind that claiming on TPD cover isn’t easy as you have to meet a few different conditions, including a waiting period which generally ranges from 3-6 months, you would generally need to provide proof from 2 medical professionals that you are permanently disable and will never be able to work again.
Also, depending on whether you went through underwriting process or not will increase or reduce the percentage of a successful claim dramatically.
Good luck!
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