LIFE INSURANCE, TPD & INCOME PROTECTION CLAIMS
Life insurance policies can provide for payment if diagnosed with a terminal illness. Payment for genuine claims can be delayed if an insurer believes the insured did not comply with their disclosure obligations. They will trawl through medical records looking for even minor ailments and claiming if they had been disclosed, then insurance would have been refused. Salerno Law is familiar with insurance policies and disputes and can advise and act for you to overcome these obstacles. Life insurance pays your nominated beneficiary an agreed sum on your death. There are restrictions that relate to self-harm. The benefit doesn't usually form part of your estate. The trustees of the policy will follow a binding nomination if provided. If no binding nomination is provided, the trustee will determine your next-of-kin (most likely the person you wanted to benefit e.g. spouse or children). The safest option is to make a binding nomination that does not expire.
TPD refers to total and permanent disablement. This disablement can be permanent or partial and payments on policies are lump sums, usually applying where the insured person cannot return to their usual employment or has serious living restrictions. TPD claims have become fodder for large law firms to advertise in order to entice all manner of claims, but these matters do not need to be expensive to run. The insurance companies may require a lot of paperwork and medical reports but once all their boxes are ticked, most claims are accepted and paid.
Income protection policies pay about 75% of wages for a defined period, generally 2-5 years or to retirement age. They do come with offsets for other benefits such as workers' compensation or Centrelink. If you find yourself in a dispute, then give us a call to get experts on your side.