|
Post by ghostknife on Mar 13, 2019 5:38:02 GMT 7
Hi guys, last week after seeing a news story on superannuation fund TPD insurance I realised that I might have some, I checked and I do. It's just the default package that they give as I never paid extra so not much money, if I'd realised 5 years ago when I got DSP it would have been a lot better as it decreases dramatically with age. Anyway, I couldn't find any obvious information on centrelink site etc relating to insurance, does anybody know how this affects payments? Will they cut me off until it's used up, average it over a year etc? I really don't want to end up with one of those letter saying I've done fraud or something and get a debt. I haven't applied for the insurance yet.
|
|
|
Post by Denis-NFA on Mar 13, 2019 7:22:57 GMT 7
Hi guys, last week after seeing a news story on superannuation fund TPD insurance I realised that I might have some, I checked and I do. It's just the default package that they give as I never paid extra so not much money, if I'd realised 5 years ago when I got DSP it would have been a lot better as it decreases dramatically with age. Anyway, I couldn't find any obvious information on centrelink site etc relating to insurance, does anybody know how this affects payments? Will they cut me off until it's used up, average it over a year etc? I really don't want to end up with one of those letter saying I've done fraud or something and get a debt. I haven't applied for the insurance yet. Welcome ghostknifeIf it comes in as "income" then it will definitely effect your DSP. But, TPD (Total Permanent Disability) should be treated as an asset as you are being compensated for your loss of ability. Depends on the amount they will pay you but check with a solicitor and/or C/Link. But if you check with C/Link make sure it is a department that understands these things. The only C/L department that I know would be C/Link International but if you do call them they will put you onto the correct internal C/L department. All the best Denis
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Mar 13, 2019 7:34:00 GMT 7
Welcome back ghostknife. One of our members has recent personal experience with this, so I'll leave it up to them. I'm sure they'll be along shortly. Cheers bear
|
|
|
Post by ghostknife on Mar 13, 2019 7:52:15 GMT 7
Thanks, yeah I haven't been here a while. I like to gather as much info as possible before calling clink and "tipping" them off. I called a law firm the other day but they won't give any info or advice until I fill paperwork and they have done their investigation which would take 6 weeks apparently. At that point it starts to cost money which I have to pay IF I lose the claim, which I definitely don't have. The mental health area is very grey in the policy.
|
|
|
Post by tasjo on Mar 13, 2019 11:53:21 GMT 7
I was granted TPD and it's not classed as income... If once granted it is either paid into a super fund or used to purchase your primary residence it doesn't have to be declared to Centrelink.
One thing to do before applying for TPD is to apply to the super fund for permanent incapacity. This can happen at the same time but gives the insurance company less likelihood to reject the claim. Generally it means having two doctors signing a permanent incapacity medical certificate (some super funds have their own). This releases the balance of your super but make sure you don't withdraw it all or the TPD becomes invalid.
I used a no win no pay lawyer, happy to pass their details on. It is possible to do it yourself but if you think there may be grey areas the lawyers can be worthwhile.
I withdraw lump sums which are also not classed as income, but if an asset is purchased you will need to update your assets (unless it's in your home)
Happy to assist if I can, the devil's in the detail of the policy and being insurance they like to minimise their liability as much as possible.
|
|
|
Post by tasjo on Mar 13, 2019 14:02:36 GMT 7
I would also be checking back on some old super statements as to the value of your TPD payout when you ceased work... If it's significantly different it might also be worth having a lawyer to 'negotiate' that as well.
|
|
|
Post by tasjo on Mar 13, 2019 14:37:29 GMT 7
Just for some additional info...
Compensation for loss of income (ie workers compensation, road accidents) generally is classed as income and has an exclusion period. If you were trying to confirm any of those details Centrelink has a compensation team (who are generally quite good)
Income protection can be classed as compensation unless it is linked to super, when it is classed as income. Pensions reduce or may not pay at all depending on the level but if it is linked to super there is no exclusion period.
TPD is neither income or compensation unless you take it in regular scheduled payments. Ad hoc withdrawals can be made but are taxed (at a concessional rate). If you are below aged pension age super is not classed as an asset. The only payment I have that has been affected is FTB, as the withdrawals are part of my adjusted taxable income.
I personally found the compensation team to be quite helpful, and I had all the different types of payment. They explained why one type of insurance payout causes an exclusion period whereas another doesn't and quite a few other things.
|
|
|
Post by Denis-NFA on Mar 14, 2019 7:14:38 GMT 7
Thank you for the information tasjobear you may consider putting tasjo's posts on a permanent link somewhere on the forum. Denis
|
|
|
Post by ghostknife on Mar 14, 2019 13:52:15 GMT 7
I was granted TPD and it's not classed as income... If once granted it is either paid into a super fund or used to purchase your primary residence it doesn't have to be declared to Centrelink. One thing to do before applying for TPD is to apply to the super fund for permanent incapacity. This can happen at the same time but gives the insurance company less likelihood to reject the claim. Generally it means having two doctors signing a permanent incapacity medical certificate (some super funds have their own). This releases the balance of your super but make sure you don't withdraw it all or the TPD becomes invalid. I used a no win no pay lawyer, happy to pass their details on. It is possible to do it yourself but if you think there may be grey areas the lawyers can be worthwhile. I withdraw lump sums which are also not classed as income, but if an asset is purchased you will need to update your assets (unless it's in your home) Happy to assist if I can, the devil's in the detail of the policy and being insurance they like to minimise their liability as much as possible. Thanks tasjo thats helpful, I don't own a home so would have to leave it in super I guess. The TPD amount was nearly double about 6 years ago when I was granted DSP, I was pretty annoyed when I realised I could have applied for it ages ago. One of the reasons I rang the lawyers was too see if it was possible to claim based on when I stopped working which would have been about 8 years ago, it would make a significant difference in my life. I don't have an answer to that yet.
|
|
|
Post by ghostknife on Mar 14, 2019 13:54:38 GMT 7
I would also be checking back on some old super statements as to the value of your TPD payout when you ceased work... If it's significantly different it might also be worth having a lawyer to 'negotiate' that as well. The fund (TelstraSuper) have an online calculator/check, I can just login to my account and look back, which is what I did
|
|
|
Post by tasjo on Mar 14, 2019 14:29:55 GMT 7
I would also be checking back on some old super statements as to the value of your TPD payout when you ceased work... If it's significantly different it might also be worth having a lawyer to 'negotiate' that as well. The fund (TelstraSuper) have an online calculator/check, I can just login to my account and look back, which is what I did I'm not positive but I believe part of the TelstraSuper policies may be that they often include income protection to 65 yrs old... would definitely be worth checking. From the forms I had (2 different super funds, not TelstraSuper) I had to put the date that I ceased work and whether I had returned to any work since... one of my policies had 'day one TPD' for certain conditions (mine met this criteria) along with a separate 2 yr income protection policy. There is also a refund of the insurance paid beyond the point that you ceased work, which could make it easier to claim from this date (would need to get legal advice on this though). If you have a community legal centre close by it would be worth asking them the questions as it wont cost you anything. I decided to leave a large portion in my super because its unlikely I will be making contributions in the future, and also due to it not being assessable.
|
|
|
Post by warren1969 on Jul 22, 2019 4:41:25 GMT 7
The fund (TelstraSuper) have an online calculator/check, I can just login to my account and look back, which is what I did I'm not positive but I believe part of the TelstraSuper policies may be that they often include income protection to 65 yrs old... would definitely be worth checking. From the forms I had (2 different super funds, not TelstraSuper) I had to put the date that I ceased work and whether I had returned to any work since... one of my policies had 'day one TPD' for certain conditions (mine met this criteria) along with a separate 2 yr income protection policy. There is also a refund of the insurance paid beyond the point that you ceased work, which could make it easier to claim from this date (would need to get legal advice on this though). If you have a community legal centre close by it would be worth asking them the questions as it wont cost you anything. I decided to leave a large portion in my super because its unlikely I will be making contributions in the future, and also due to it not being assessable. I received a payout for TPD of over 700K which when declared to Centrelkink did not effect my Pension and I did not have to put my funds ionto a houise or anything else. Obviously inrest earned affects your pension but not hugely and as long as you declare it you will not have a debt etc in the future. As for not touching all oif your super or you will effect your TPD I dont agree as I did access my super from the fund as well and it effected nothing. It was 5 years ago all of this occured and I have since commenced full time work 40Hrs a week and this also is something the insurer has no legal comeback on as well due to the fact people can improve enough to work after 5years etc so any questions on this subject please feel free to message me.
|
|
|
Post by Trevros on Jul 22, 2019 17:17:58 GMT 7
To the OP I went through the process of getting one of my super fund's TPD on my own. For your concerns about the age rate of payouts they are based on the age you were when you were first incapacitated not when you lodged the claim. For mine I had two doctor's reports and had to see one of their doctors for clarification. As I lived in a remote area of the country at the time I had free flights to and from Perth as well as all transportation to and from the airport and accommodation paid for to see their doctor. The process was a hell of a lot quicker than the saga of getting the DSP which for me took nearly two years and a lot of months surviving on little more than homebaked bread and peanut butter.
|
|
|
Post by Denis-NFA on Jul 22, 2019 21:47:15 GMT 7
To the OP I went through the process of getting one of my super fund's TPD on my own. For your concerns about the age rate of payouts they are based on the age you were when you were first incapacitated not when you lodged the claim. For mine I had two doctor's reports and had to see one of their doctors for clarification. As I lived in a remote area of the country at the time I had free flights to and from Perth as well as all transportation to and from the airport and accommodation paid for to see their doctor. The process was a hell of a lot quicker than the saga of getting the DSP which for me took nearly two years and a lot of months surviving on little more than homebaked bread and peanut butter.You were rich! I so miss homebaked bread.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Jul 23, 2019 6:52:56 GMT 7
To the OP I went through the process of getting one of my super fund's TPD on my own. For your concerns about the age rate of payouts they are based on the age you were when you were first incapacitated not when you lodged the claim. For mine I had two doctor's reports and had to see one of their doctors for clarification. As I lived in a remote area of the country at the time I had free flights to and from Perth as well as all transportation to and from the airport and accommodation paid for to see their doctor. The process was a hell of a lot quicker than the saga of getting the DSP which for me took nearly two years and a lot of months surviving on little more than homebaked bread and peanut butter.You were rich! I so miss homebaked bread. "In a camp oven." It's both a statement and a question to you Denis-NFA. Yuummmeeee! Cheers bear
|
|