Many people are under the misunderstanding that they cannot apply for their TPD claim if they are already receiving Income Protection payments. However, that’s actually not the case. You can claim TPD and Income Protection at the same time if your illness is serious and ongoing.
How are Income Protection Payments & TPD Payments Made?
Income protection payments would normally be made on a monthly basis for the period of time that you are unable to work. Whereas a TPD payment is a lump sum payment which would be given if the claimant was permanently disabled and unable to ever return to work.
Do you need to prove at-fault?
For Income Protection and TPD you do not need to prove that your employer was at fault, all you need to prove is that your illness or disability prevents you from doing the job that you are skilled and trained to do.
Let’s Take an Example
Take this example. Sandra is a 55 year old who has been employed as a receptionist for 20 years. She develops a minor back injury preventing her from sitting in any position for long periods of time. She is no longer able to sit and work unless and until she receives full treatment. She had attended her doctor and the doctor diagnosed her with lower back pain due to heavy lifting. Therefore she will need some physiotherapy sessions and have pain killers. Doctor recommended Sandra not to work for 2-3 months. In this instant, Sandra can claim Income Protection as thus far her injury is considered NOT Permanent.
However 3 months later, after receiving further treatments and completion of further CT Scans/X-rays, Sandra discovered she had debilitating back injury caused due to lumbar facet syndrome. Due to ongoing pain and her doctor confirming, this is a permanent injury and Sandra may not return back to her usual employment, Sandra made a Total and Permanent Disability (TPD) claim with her insurer.
She is able to apply for both Income Protection and TPD at the same time.
While her TPD claim is still being assessed, her Income Protection claim is already approved. She begins receiving monthly Income Protection payments.
This is a huge financial help for Sandra and her family. However, she is still awaiting her TPD claim result.
After a few months, her TPD claim is also successful and she then receives a lump sum payment.
Once she receives the TPD payment, there is no reason her Income Protection payments will stop unless the maximum period ( usually 2 years) is completed.
