What factors affect the TPD payout amounts I could receive?
The lump sum amount you’ll receive for your total and permanent disability is calculated according to a range of factors, and assesses your injuries or illness according to the definition of TPD, and the medical bills, rehabilitation costs and other costs caused by your disablement. When deciding the amount of your TPD insurance claim the insurer from whom you are seeking a claim will look at factors such as:
✔ The level of cover you possess
✔ The rules and regulations of your superannuation fund
✔ The existing balance in your superannuation account
✔ The length of time you have been paying into your account
✔ The impact your TPD has on your health and ability to work
✔ The amount of out-of-pocket expenses you’ve had to cover
✔ Any ongoing health issues you’ve had because of the injury
✔ Your health history
✔ Any decrease in your life expectancy
✔ If your TPD cover is included as part of a life insurance policy
✔ How much of your income you have lost as a result
✔ The cost of ongoing treatment, rehabilitation and medical bills
The lump sum amount you’ll receive for your total and permanent disability is calculated according to a range of factors, and assesses your injuries or illness according to the definition of TPD, and the medical bills, rehabilitation costs and other costs caused by your disablement. When deciding the amount of your TPD insurance claim the insurer from whom you are seeking a claim will look at factors such as:
Am I eligible for both a TPD payout and disability pension?
Receiving a TPD payout will not affect your eligibility for any ongoing disability payments. Many people have eligibility for both insurance money and a support pension. If you’re unsure about your eligibility, our lawyers can help. See our TPD claims page for more information or give us a call on 1800 958 498.
Do I have to pay tax on my TPD insurance payout?
As a general answer, there is no tax payable on your TPD claim as a TPD payout is not a taxable income. However, there are still certain exceptions and guidelines to follow.
If you make a successful TPD claim, the payout amount will be paid into your superannuation account to join the taxable component of the fund. At this stage in the claim process, there will be no tax payable.
If you are under the preservation age and withdraw from your super after this stage, you will pay tax (including a medicare levy). If you are over the preservation age, you will not pay tax. However, those under the preservation age will have a portion of their withdrawal as tax free due to the tax free uplift that their super will provide. An example of a tax free uplift calculation is:
New tax-free component = existing tax-free component + withdrawal amount x future service period/total service period.
As above it can be a little daunting, so for expert guidance on your TPD payout, please do not hesitate to get in touch with our team. We will provide assistance and advice on a no cost, no obligation basis.
I’ve used the TPD payout claim checker – what now?
If you have assessed your TPD claim with us using the checker on this page, then sit back and we will be in touch. Or if you oprefer to talk with a TPD lawyer to discuss the specifics of your case. We operate on a no win, no fee basis and ensure that you understand every stage of the process. Get in contact with us today.