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TPD info needed

Discussion in 'Superannuation, SMSF & Personal Insurance' started by nonya, 3rd Oct, 2010.

  1. nonya

    nonya Member

    Joined:
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    Location:
    sydney
    Hi everyone,

    I am writing to find out some information on TPD and guidelines, a cousin of mine is going thru a tpd claim at the moment but seems a little worried about what it all means. He is 32 years old and has worked in the IT industry since he was 20. He had a nervous breakdown a few years ago and has never been able to work since, he made a tpd claim when his income protection ceased but is a little concerned about filing for tpd.

    He has a lot of what if questions.

    firstly if his tpd is paid out and he gets a little better is he allowed to work part time like 3 or 4 hours a week, he is concerned that being locked up all day everyday and not contributing to society would probably make his emotional state worse.

    He has also been led to the impression that he wont even be able to do volunteer work, I have also heard this from other people. I know some people that have taken out TPD and paid out and are doing voulnteer work and others have been told its not allowed.

    I also know of some people who have been paid out and are retraining for different types of work.

    Also for my sake. TPD is insurance thats meant to last for the rest of ones life so one would assume that it should be invested wisely. So if some who has a payout invests it into a franchise and arent allowed to work arent they by definition breaching the conditions of TPD as they are owner/operator of that franchise ?

    thanks for the help
    nonya
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Location:
    SE Queensland
    Hi nonya

    Has your cousin applied for a Disability Pension from Centrelink while he waits for TPD?





    Johny.
     
  3. nonya

    nonya Member

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    No he hasnt he has been off work for many years now but isnt really the type of person who asks for help so he has been struggling for years. He has got a letter saying that insurance has paid and the money is sitting in a low risk fund and has sent the forms off for his bank info.

    As I mentioned his concern is that he isnt going to be allowed to do anything, I have told him he worries too much but I can also see what his concerns are especially considering how young he is.

    nonya

     
  4. Dolfinwise

    Dolfinwise Well-Known Member

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    Location:
    Brisbane
    TPD payout

    Once a TPD claim is paid a recipient is free to do whatever they like. If however there is a liklihood that your friend will be able to work again in some capacity it is unlikely he will qualify for the TPD payout. TPD is Total and Permanent disablement. Generally the definition of the policy requires that the insured be certified as unable to ever work again. The details you have given suggest it may be hard for your friend to satisfy this condition as recovery is always a possibility over time. Each policy is different however and this is general information only.

    Hope this helps

    Regards
    Jason


    Brisbane Financial Planners | Financial Advice | Financial Advisor.
     
  5. nonya

    nonya Member

    Joined:
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    Location:
    sydney
    Jason,

    Thanks for that info as I mentioned in my last post it the insurer has paid the insurance component and he received a letter saying the money is in a cash management or some kind of interest only account, I cant remember exactly what he said of the top of my head. He also received some forms as to how he wanted to receive the funds ie lump sum, roll over into another super etc.

    So its sounding like he is thru the process. His concerns are that at his age what if things get better can he work ever again. I was suggesting to him to buy a franchise like a coffee shop and earn income that way. Hence my question about the franchise.

    He is basically worried that if he does get a little better and works part time he will get in trouble he has seen stuff on insurance fraud etc and doesnt want to get into any trouble.

    As I mentioned he hasnt asked for any govt hand outs and he doesnt want to do anything wrong.

    thanks for the info.

    nonya

     
  6. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Location:
    SE Queensland
    Nonya,

    Your cousin can still apply for the pension if he has received a lump sum. There is no shame getting benifits if he has a real condition.

    Centrelink has a deeming acessment on assets. They will work out how much he can receive. A residential home is Not counted as an asset. If he decides to invest the lump sum, but doesn't own a house, he is entitled to rent assistance.

    He can get a pension card, while good for rail and the movies, buys medicine for $5. This can be extremly useful, if your medicine costs $200 a week!

    On a personal level, there are organisations like GROW which offer structure and friendship.



    Hope this helps, :)
    Johny.
     
  7. nonya

    nonya Member

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    Johnny,

    Thanks for the info I have passed this on to him so the ball is now in his court re centre link. Is it true what was said before that if he does get better he can go back to work? This sounds a little strange to me.

    If he wanted to find out for himself is there a regulatory body that manages this or is there a way for him to find out as he is really stressing out as it sounds like they are getting ready to pay him out from the letter he said he has received.

    thanks
    nonya

     
  8. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
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    Posts:
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    Location:
    SE Queensland
    TPD constitutes.... as an occupation or profession that has become incapacitated to such an extent as to render it unlikely to ever be enguaged again.

    TPD Legal help line
    1800 352 100





    Johny.
     
  9. nonya

    nonya Member

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    Location:
    sydney
    Johny,

    Thanks for the number i will pass it on but it sounds like its too late as he advised me his payout has gone into his bank so am guessing thats it.

    He can call that number if he needs to know his rights I guess.

    Thanks again
    nonya