What are the differences between Centrelink disability and TPD insurance?
While both are benefits that help out of work Australians, they are tested differently and can give different amounts of financial support. Each month you work, your superfund takes money from your retirement savings to pay for your TPD insurance. Since you are paying directly for this insurance, you are fully entitled to claim your TPD insurance if you can’t work. Read on to find out more about the differences between your TPD payout and Centrelink payments.
Who pays for the claim?
Centrelink Disability Support
First and foremost, disability support is paid to you by the Government. It is a Disability Support Pension (DSP), which you need to meet certain eligibility for. To be eligible for the pension you need to meet their 20-point criteria.
TPD Insurance is paid for as part of your superannuation fees each month when you are working. Three types of insurance are commonly covered by your superfund payments – including Death Insurance, Income Protection and Total and Permanent Disability (TPD). All insurances are covered by premiums you pay, but most workers don’t know they exist. You paid for this insurance with hard earned money and it should be paid out if you ever can’t work due to a health condition.
Who is eligible for Centrelink and TPD?
Centrelink Disability Support Eligibility
To claim disability support from the Government, you need to meet age and residence requirements as well as strict income thresholds. Your partner’s income will also be assessed in the income test. You will also need to provide medical evidence of a disability – this could be in the form of a diagnosis, treatment plans, condition impacts, and your doctors records. You can read more about eligibility here.
TPD Insurance Eligibility
To be eligible for a TPD payout you will need medical evidence to show that your health conditions make it too difficult to work. Your claims assessor requires important medical evidence to prove you are unable to return to work and if your disability prevents you from doing regular activities of life.
What are the wait times on these pay-outs?
Centrelink Disability Support Wait Times
Centrelink has long wait times when reviewing people for the disability support pension. Certain disabilities can qualify for ‘manifest grants’ which mean you do not have to undergo a full assessment. These conditions are fully listed on the Government manifest medical rules for disability support pension. If you fall within this category, Centrelink should process your application within 1-2 months. This however can vary, and if you fall outside this grant – you will need to wait longer.
TPD Insurance Wait Times
On average it takes our team 9 – 12 months to complete a claim from the day the initial investigation begins. According to the superfund regulator APRA, people who try to claim their TPD without legal representation often wait a whole 18 months.
The bottom line on Centrelink disability and TPD Insurance
Centrelink disability and TPD Insurance payouts are the best ways for out of work Australians to get financial relief. The best part is that even though they are assessed differently, you can apply for both at the same time! If you aren’t sure if you quality, make sure you give us a free call today and we can have a no obligation chat about your circumstance.