Understanding the TPD claims process is crucial, whether you are just about to lodge a claim or dealing with a rejected claim.
At Curo Financial Services, we provide an easy-to-follow TPD claim process to help you and your family access the financial compensation you deserve.
TPD insurance generally pays a lump sum benefit if you become permanently disabled and are unlikely to work again due to illness or injury.
A TPD insurance claim is a process that enables you to access financial support from your TPD insurance policy when a serious illness or injury has left you unable to work permanently. The policy benefit is typically paid out in a lump sum. It can be used to cover medical expenses, pay for ongoing care, maintain your standard of living, or provide financial support to your family.
In 2025, one in every three Australians has TPD coverage, but many are still confused about their policy coverage and benefits.
Generally, TPD insurance policies define total and permanent disability in three types:
| Factor | Own Occupation TPD Insurance | Any Occupation TPD Insurance | Activities of Daily Living TPD Insurance |
|---|---|---|---|
| Definition | Means being unable to work permanently in the same job function at the time of disability. | Means being unable to permanently work in any occupation that is suitable to the insured's education, experience, or training. | Means being unable to perform two or more of the daily living activities permanently (eating, bathing, dressing). |
| Coverage | Pays a lump sum benefit if you become unable to work in the same job function you held before the disability, even if you can still perform a job in a different role. | Pays a lump sum benefit if you become unable to work in any job that is suitable to your education, training, or experience. | Pays a benefit when you become unable to work and are unable to take a bath, eat, and/or dress. |
| Claim Difficulty | Has a higher probability of getting approval as it is easier to prove the disability. | More difficult to prove disability under the broader coverage definition. | The most difficult definition to be approved for a claim is due to the additional requirements of daily living activities. |
| Cost | More expensive due to comprehensive coverage. | Less expensive, but may require a severe medical condition to process a successful claim. | Often, the least expensive type of insurance has a higher claim threshold. |
| Commonly Available/Offered | Less common due to its comprehensive terms and premium cost. | The most common type of TPD insurance is due to its affordability. Often obtained through the superannuation fund. | Not a common type of TPD insurance. |
| Insurable Age Limits | The minimum entry age is 18, and the maximum is 59-65, depending on the insurer. The term of the benefit is typically until age 65. | The minimum entry age is 18, and the maximum is 59-65, depending on the insurer. The term of the benefit is typically until age 65. | The minimum entry age is 18, and the maximum is 59-65, depending on the insurer. The term of the benefit is typically until age 65. |
| Suitable For | Individuals with highly specialised skills, such as engineers, surgeons, and heavy equipment operators. | Individuals who are looking for TPD coverage with a lower cost of the premium and have fewer work-related risks. | For individuals who want financial support when they are unable to perform their daily living tasks. |
The majority of rejected TPD claims have encountered difficulty in proving permanent disability. In most cases, the common reasons are failing to comply with the policy’s TPD definition and insufficient medical evidence to support the disability.
As a result, many individuals face a longer TPD claims process, and some abandon their claim applications. Working with an expert TPD claims adviser, such as Curo, helps reduce application errors and avoid common claim pitfalls.
In general, the basic eligibility requirement for lodging a TPD claim is being unable to work permanently due to severe illness or injury. Depending on your insurer, you also need to meet these common requirements:
In Australia, TPD claims are commonly filed by individuals with high-risk and even high-stress jobs (mental health is one of the leading causes of claims), such as:
A TPD insurance policy covers a wide range of medical conditions, provided they cause the individual’s total and permanent disability and prevent them from working again.
According to industry data, the most common reasons for TPD claims are:
Mental Health: 4 out of 10 Australians between the ages of 16 and 85 years old have suffered from a mental health issue at some point in their life. Most of the approved TPD claims were due to severe depression, anxiety, PTSD, and other conditions.
Musculoskeletal Disorders: The leading reasons for TPD claims for musculoskeletal issues come from severe injuries from car or workplace accidents. In addition, a TPD insurance policy covers severe conditions such as osteoarthritis, rheumatoid arthritis, osteoporosis, scoliosis, or lupus that permanently prevent the insured from working.
Cancer: Out-of-pocket costs for cancer treatment vary widely by stage, which puts individuals in financial trouble. A TPD insurance policy pays a benefit when the insured is permanently unable to work due to cancer.
Nervous system disorders: Severe neurological conditions such as stroke, Parkinson’s and Alzheimer’s diseases, and dementia can permanently disable a person and prevent them from working.
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Accepted TPD claims in Australia is hovering at 83.5%—professionally assisted and individually processed claims combined. It is crucial to understand the TPD claims process to improve your probability of approval.
Contact your superannuation fund or insurance provider (if the TPD policy is held under your name) to inform them about your intent to lodge a claim.
Your insurer might ask for some basic information, such as:
They will then send you the TPD claim pack and the list of documents you need to submit.
Ensure your TPD insurance policy is valid and active at the time you become disabled. Most insurers require that your premium payments are up to date, while some have more complex criteria for declaring your policy active and valid.
Confirm your eligibility based on the disability definition of your policy. Review the Product Disclosure Statement (PDS) to understand your TPD coverage:
Compile and organise all the related laboratory tests and the physician’s statement that can help prove your permanent disability. In some cases, the insurer may request a colleague’s statement to determine your inability to work.
The documents and evidence may include:
You should keep copies of everything you send and track the dates and your communication with the insurer.
When it’s time to submit your TPD insurance claim, remember to:
Note: Every insurer has its own timeline for issuing a decision. Also, the length of the process depends on the complexity of your case and the completeness of your documents—it can take from 3 to 12 months, with an average of 6 months to receive your payout.
During this time, you should:
If you feel that the insurer is delaying or avoiding your claim, you can escalate the matter to their internal dispute resolution team or lodge a complaint with the Australian Financial Complaints Authority (AFCA).
On average, 1 in 10 TPD claims applications is declined for several reasons. However, the insurer’s decision is not always final, and every individual has the right to appeal for reconsideration.
If your claim is rejected, below are your options:
Note: Engaging with a legal professional can be expensive, depending on your case.
Understanding the TPD claim timeline helps you plan your next steps to safeguard your finances.
Typically, the TPD lump-sum benefit is paid within 3 to 12 months of TPD claim submission. The industry average for processing a claim is six months.
In some cases, claims may take longer, depending on the complexity of the case. Consulting a TPD claims expert can save you time and help you avoid claim pitfalls.
Generally, there is no waiting period for TPD insurance policies to disburse their payout. The policy only requires that you be off work for at least three to six months before lodging a claim.
Your claim type: The reason for your disability is a crucial factor when submitting a claim. Generally, it is easier to prove physical disability than mental illness disability—resulting in a shorter approval process.
The severity of your disability: The eligibility for a TPD insurance claim depends on the severity of your condition and whether it permanently disables you from working—some conditions may require extensive assessment.
How much medical evidence is available: Insurers will base their assessment on the medical evidence you provide. Detailed medical records, results, and physician statements can help the insurers validate your disability.
The complexity of your claim: Complex claims may require extensive documentation and evaluation, lengthening the process. Conversely, claims with minimal complexities may require less in-depth evaluation.
Your employer or insurer’s cooperation: Informing your employer about your TPD claim application can help you build a stronger application. Your employer can help you provide work-related documents and statements of your disability.
Insurance companies: The timeline for processing a TPD claim varies per insurance provider. It usually depends on their team’s responsiveness, internal protocols, and resources. Staying in touch with your insurer helps your application get moving.
Incomplete documentation: Missing medical records, payment history, medical practitioner assessment, and more may extend the process. These circumstances are avoidable when you consult with a TPD claims expert.
Disputes and investigations: Appealing your insurer’s decision may require submission of additional documents or medical evidence—all of which further delays the process
The amount of the TPD payout you will receive depends on several factors:
Your level of cover: Often referred to as sum insured. Generally, this is the amount of cover you initially agreed to when the policy was created.
Where your policy is held: Taxes on TPD payouts are another consideration, whether you own a personal TPD insurance policy or have it held through super. You need to review the impact of taxes to maximise your TPD benefit. If individual policies are held for personal purposes, your TPD benefit will likely be paid as a tax-free lump sum. However, policies within super may be subject to taxation.
Your policy’s TPD features: Some TPD insurance policies offer a ‘partial payment’ should you suffer a significant disability, but do not permanently disable you from working. These policies often have percentages that correspond to the level of your disability.
The structure of your TPD cover also affects the amount of your payout.
Age-based cover: Typically, the insurance coverage age-based TPD cover decreases when you age. This TPD insurance structure is common for policies held in superannuation.
Specified cover: Typically, this type of insurance sets a specific amount of coverage that remains constant as you age. Individuals who prefer owning their TPD insurance outside of their super usually receive this type of TPD insurance structure.
Your TPD payout will depend on the amount of your cover—whether you own the policy individually or through a super. On average, lump sum payments range from $30,000 to $450,000.
The cost of having TPD insurance can depend on various factors, such as:
If you work with a TPD insurance expert, you can customise your policy based on your budget and needs.
It is common for people to forget their insurance coverage. When faced with disability, be sure to check the following, where you can lodge your TPD Insurance claim:
Whether you individually own your TPD or it is held under your super, to have a successful TPD claim, you must:
| Factor | Superannuation | Retail Insurance Provider |
|---|---|---|
| Affordability | Offers tax benefits on premiums paid | Not tax-deductible, as payments are considered paid from your personal after-tax cash flow |
| Coverage | Superfunds have automatic and standard TPD coverage | The coverage amount, waiting period, and exclusions can be tailored depending on your needs and financial situation. This helps achieve comprehensive cover for individuals. |
| Claims Process | Longer process due to multiple parties involved | Easier and quicker to process claims |
In general, a lump sum TPD payout is tax-free when:
If you are under the preservation age and your TPD policy is within your Super, the taxable component of your TPD lump-sum payout will be 22%. While the income stream withdrawals will be taxed at their marginal tax rate, less the 15% tax offset.
Our free TPD Taxation Calculator can help you estimate how much tax you need to pay on your TPD payout.
While it is possible to lodge a TPD claim on your own, the process can be complex. Misrepresentation of information and delays in submitting requirements may increase the likelihood that your claim will be declined.
Submitting incomplete and inaccurate documents: Increase your chances of claim approval by avoiding inconsistency or discrepancy in your claim forms. Make sure your medical records and supporting documents are accurate and organised to make the assessment by your insurer easier.
Misunderstanding your policy’s TPD definition and coverage terms: Review your policy’s definition and terms to ensure your claim eligibility.
Delaying the processing of your claim: Waiting too long can weaken your application. Be mindful if your insurer has a timeframe for claim notification.
Missing the submission deadlines for additional requirements: Depending on your case, your insurer may require you to submit additional requirements. Timely submission will help your insurers assess your application faster.
Failure to disclose all the relevant information: Your insurer has the capacity to scrutinise and investigate your application. Failure to disclose important information relevant to your application may negatively affect your chances.
Not seeking professional support: Processing a TPD claim can be mentally and administratively demanding. Professional TPD claims advisers can help you through the process, avoid common mistakes, organise your documents, and communicate with your insurer on your behalf.
Aside from not meeting the eligibility requirements or not having enough medical evidence, there are other reasons for rejection such as:
The medical condition is deemed to be not permanent and not total: One of the common reasons for rejected TPD claims is failure to present how permanent the disability is. When this happens, the insurer may typically require additional documents, such as statements from other medical doctors, to support your claim.
You missed the TPD claim window: While most insurers do not include a claim window provision in their TPD policies, it is best to review your policy in case one is present.
Misinterpretation of Policy Terms and Conditions: Understanding your policy’s definitions, exclusions, and limitations is crucial. Consult your insurer or get legal advice if needed.
Daily Task Performance Ability: Some TPD policies assess your inability to perform daily activities permanently. Statements from those who know your functioning level may be needed.
TPD claim rejected? Do not lose hope yet. You can explore these options to help you reverse your insurer’s decision.
Internal Appeal Process: Typically, most insurance providers have a 21-day window to let the individuals appeal their decision. During this window, you need to be able to provide supporting documents that will further support your disability claim. However, this could be a daunting task for an average person—especially when suffering from a disability.
Working with a TPD claim expert: Expert TPD claims advisor, such as Curo Financial help
Take legal action: With the right help from professionals such as solicitors, you may have recourse to taking the matters legally. However, aside from the daunting tasks awaiting you, you are also exposing yourself to high legal fees with no assurance of approval.
Work with a TPD claim expert: We recommend seeking help from TPD claims experts such as Curo Financial. We specialise in converting rejected claims to favorable decisions.
While waiting for the approval of the TPD claim, which can take several weeks or months, an individual can work on the following steps to maximise the benefit:
Assess your financial situation: Getting an insight into your income sources (TPD payout, government benefits, and others), living expenses (housing, food, medical bills, utilities, and transportation), and your debt (outstanding mortgages, loans, and credit card balances) will help you plan your financial stability during challenging times.
Know the impact of taxes on your TPD payout: Computing how much you will need to pay in taxes once you withdraw your TPD payout is important, as it will shrink your benefit amount.
Determine if your Centrelink payments are affected: Centrelink payments for people with disabilities undergo a series of income and asset tests. These determine how much Disability Support Pension (DSP) they will receive.
Create a financial plan: Once you have an overview of the information above, it is crucial to develop a plan that aligns with your current financial and medical situation and supports your lifestyle. Your TPD claim won’t last long if not used properly.
Work with a financial advisor: Need help in managing your TPD payout? Working with a TPD claims expert such as Curo can also help you manage your payout wisely.
Whether you are just starting on the TPD claim process or have already been rejected by your insurer, Curo Financial can help you.
Our team of TPD claims experts has worked on hundreds of TPD claims across different complexities and coverage sizes in Australia. We understand the importance of being able to access your TPD benefit — not only to cover the costs of your treatment and recovery, but also to maintain your family’s lifestyle.
As specialist insurance advisers, we understand TPD insurance intimately and have developed relationships with senior claims managers at many different insurers. Due to these relationships, we often can escalate claims issues within an insurer and super fund to achieve an expedited outcome.
Curo Financial works on a no-win, no-fee basis, which means you do not pay anything unless we win your case. We also offer a free initial consultation to assess your situation and advise you on the best course of action.
For eligible clients, we offer a no-win, no-fee basis for our services, giving you more confidence to work with us. Additionally, we can share your options with you after you receive your TPD payment — to fully maximise your TPD claim benefit.
If you are ready to start your TPD claim or if you have any questions about the process, do not hesitate to reach out to our team. Our goal is for you to access the financial support promise of your TPD insurance.
Mental health (25%), musculoskeletal disorders (19%), injuries from accidents (15%), nervous system disorders (14%), and cancer (12%) are the top reasons for claiming TPD insurance in Australia.
No, TPD insurance doesn’t cover death. It offers financial support through a lump sum benefit in case of being unable to work permanently due to long-term disability from illness or injury. However, in some insurance providers, it can be combined with death and life insurance coverage.
The timeframe for a TPD claim can vary depending on the complexity of your case and the insurer’s responsiveness. Generally, it can take anywhere from 3 to 12 months, with an average of 6 months for a TPD claim to be processed and paid out. However, some cases may take longer if there are disputes or delays along the way.
The coverage amount for TPD insurance varies widely. It could range from a couple of thousand dollars to over a million dollars. However, lump sum payments usually range from $30,000 to $450,000. The amount is based primarily on the coverage, which was set at the time of effectivity.
To successfully claim TPD, you need to meet the criteria set out in your policy and provide sufficient evidence to support your claim. You also need to complete a thorough application that clearly shows why you qualify for a TPD payout. Our free 7-step guide will help you throughout the TPD claims process.
TPD claims can get rejected for various reasons, such as insufficient evidence, conflicting opinions, policy exclusions, pre-existing conditions, incomplete documentation, or misunderstanding the policy’s TPD definition. If this happens, do not give up hope. We are experts at turning around complex TPD claims into favorable decisions.
Most insurers in Australia do not have a strict timeframe for processing a claim. However, most insurers would encourage you to process a TPD claim as soon as practically possible, and you have medical evidence to prove your inability to return to work. Promptly lodging your claim allows you to submit recent and updated documents.
Individuals who have the following can be eligible to process a TPD claim:
Typically, a TPD payout made outside your superannuation is tax-free. However, if your TPD payouts are made within your super, many factors make it taxable. For individuals under preservation age, the taxable component can be up to 22%.
If your claim is denied, request a rejection letter to know the reason for the denial. If you disagree with the reason, you can appeal the decision, seek legal advice, or work with a TPD claims expert like Curo Financial who specialises in converting rejected claims into favorable decisions.
General Advice Disclaimer
General advice warning: The advice provided is general advice only and in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
