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TPD payout

Discussion in 'Introductions' started by Wardie, 27th Nov, 2012.

  1. Wardie

    Wardie New Member

    27th Nov, 2012
    Albury Nsw
    Hi, I'm new to this forum and was wondering if anyone can tell me if you have received a TPD payout are you aloud to return to work at a later date ?
    I had a major back operation and was classed as permanently disabled with a lot of hard work and determination I have improved in my condition and would like to start thinking about returning to the workforce is this aloud ?
    Also can anyone give me some advice on what superannuation is a good company to go with ?
    Thanx :)
  2. Flipper

    Flipper Member

    29th Aug, 2009
    Sydney NSW
    Hi Wardie,

    In your case, it would be well worth having a look at your TPD payout documentation and/or your policy documentation which related to your original coverage.

    The period between your incident (payout of the policy) and recovery may be relevant, as will any reports from doctors and specialists detailing your recovery. If it has taken a number of years for you to be fit for work again, then this is probably less of an issue than say a recovery period of a few weeks.

    Essentially, my understanding is that if the insurance company has assessed you as totally and permanently disabled following an incident they will have undertaken a number of steps to ensure that you met their definition of this classification at the time of the incident - their own doctors assessments and so on. I'm no expert in life insurance, and you should seek specific advice but believe that their original assessment would provide you with a fair degree of protection against any legal action in relation to fraud.

    There is significant contention in the industry at the moment regarding exactly these circumstances - assessing someone as never likely to work again has been shown in some cases to be almost as debilitating as the original injury. I'm getting off topic a little here, but your commitment to recovery is to be commended - good on you for wanting to get back out there!

    As for the superannuation part of your question, you should seek specialist financial advice as there are many many choices out there.

    You need to assess what stage of life you are in (single, no kids, married with kids, approaching retirement etc) and narrow down funds from there - a professional adviser can help you with this too, or keep reading through posts on invested - particularly with regard to the planning process.

    Should you rejoin the workforce, your employer will have to pay you superannuation at a rate of 9% - which will usually go into a large industry fund unless you have selected another fund by then.

    It is at least as important to correctly match your investment objectives (depending on your life stage) to the appropriate type of investment mix within your super (high growth, conservative, capital protected etc) as which super fund you go with in the end.

    Good luck.