Post by Deleted on Mar 14, 2019 11:28:29 GMT 7
Thanks to tasjo for the excellent information
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.
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.
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.
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.
Read more: dspoverseas.proboards.com/thread/6005/insurance-payment?page=1#ixzz5i7JhN8Fe
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.
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.
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.
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.
Read more: dspoverseas.proboards.com/thread/6005/insurance-payment?page=1#ixzz5i7JhN8Fe