Q: I am going to claim TPD from my super fund due to mental illness. My psychologist thinks I will be approved. I am 29 and have a lot of reports and evidence. I can hand in my forms with everything there. Do you know how long will it take to be approved? Do all super people reject first claim to see if you will appeal?
I hope everything works out for you.
If you satisfy the conditions required by the insurance company providing the permanent disability insurance for your super fund, then your super fund has no choice but to pay out a benefit. Your super fund should have a copy of the full terms and conditions of your TPD cover (more likely you can check it out on the fund’s website). Note there may be some tax payable on the benefit.
What usually happens is the application is looked at within the super fund to ensure all information is included, then reviewed by the trustee board, and then it is considered by the insurance company. The super fund may require more information, and the trustee board also makes a decision whether to approve or not. The trustee board of a super fund often only sits once a month, so there may be some delays.
For specific timeframes, I suggest you speak to your super fund but generally speaking you can expect the claim process to take months rather than weeks.
If your claim is declined you can take this up with your super fund, and if you feel they have been unreasonable in making such a decision, you can make a complaint.
If the complaint is not resolved to your satisfaction you can make a further complaint to the Superannuation Complaints Tribunal. For more information about the SCT, see SuperGuide article insurance and your super account, see SuperGuide article Super complaints: What happens when your super fund lets you down? , and for the complaints process post-July 2018, see SuperGuide article New authority (AFCA) for super complaints now open for business.
More articles about superannuation and insurance
For more information on super and insurance see the following SuperGuide articles:
- Life insurance and super: 10 facts you should know
- Comparing super funds: Top 20 cheapest funds for life insurance
- Comparing super funds: Top 20 cheapest funds for income protection insurance
- Cost shock: Paying too much for insurance in your super fund?
- Comparing funds: Which super funds offer the cheapest insurance?
- Four reasons to buy insurance inside your super fund
- Life insurance: One in five parents will die early, or be too sick to work
- SMSFs must consider life insurance needs
- SMSFs: Can I transfer my life insurance to my DIY super fund?
- SMSFs: If I die young, will my wife pay super tax on the life insurance payout?
- SMSFs: Trauma insurance is not OK