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Kirsty R

Blog Post: TPD and Income Protection Insurance

Finding out that you have MS can be crushing news at any age. It can strike anyone at any time without any warning. There is the many horrendous symptoms that can go with it, they can be very intrusive and often cause disruption and distress especially when you have a family raising children, studying, in work placement, or in the prime of your career. There is no pause button or deferring a relapse, or symptoms. Life can get really challenging and hard.


Before I get right into the nitty gritty, let me say that not everyone’s MS is the same. MS lesions depending where they are located can cause permanent damage that can affect your ability to work in your current skillset, whether it is physical impairment, cognitive decline, or both. For anyone that has had to end their employment due to medical reasons, will know that it is not only a blow mentally and physically, it’s also a huge financial loss. It can be very scary and stressful not knowing how you will cope financially.


Being able to be re-trained in other work environments is not always an option depending on how your disability affects you. And getting access to the Centrelink Disability Pension isn’t always an easy task, don’t get me started on that subject, there are more hoops to jump through than the NDIS!


It’s not something that you are taught when starting gainful employment, but when you join a superannuation fund there is an option for Income Protection and Total Permanent Disability insurance. Sometimes it is a default setting to have it automatically set up in your policy, but either way, it is always important to make sure you are covered so in the event you were to become totally and permanently disabled due to illness or injury, and unable to work, you will/should be covered. The amount of cover depends on your income so if you ever change career paths where you are earning substantially more, make sure you contact your superannuation fund to advise them that you need to amend the amount of cover. Before enquiring or making any changes, always check the product disclosure statement (PDS) to see the exclusions and treatment of pre-existing conditions. Some super funds when increasing your cover, may ask you to answer if you have any pre-existing conditions. Just be aware of that answering yes will probably increase your premium that will be deducted from your super balance. Please do your due diligence so you can make the best informed decision for yourself.


If you are unable to work due to sickness or injury, thats where income protection cover comes into play if you suffer a loss of income. I strongly suggest you making contact with your superannuation fund to make sure you have the insurances in place and also that you have the appropriate cover. Again, as stated above, make sure you check your product disclosure statement (PDS) to avoid any issues with your policy.


It’s worth noting too that all superannuation funds are different so make sure you are aware of what your policy entails.


This blog post isn’t just for people with MS, this information should be something we all know and share with our loved ones, colleagues and friends.


For anyone with an active superannuation fund prior to an MS diagnosis, do not, I repeat DO NOT roll it over to another fund. If you have already been diagnosed and you start a new fund, you may kiss that TPD insurance goodbye because after diagnosis that means you will have a pre-existing medical condition. Always check first to make sure there is no exclusions for pre-existing conditions. Last thing you want is not being covered.


Some people have multiple superannuation accounts. So if you have any inactive accounts, by law, your superannuation funds can cancel your insurance on your policy if there hasn’t been any contributions for at least 16 months. If you want to keep your insurance you will need to make regular contributions to your account.


Now, in the event that you need to make a claim, I suggest getting some financial or legal advice. Claiming on your insurance can be very complicated, stressful and if you’re not up for advocating and knowing exactly all you are entitled to, then it might be wise to look for a ‘no win, no pay’ law firm to handle it for you. Yes you will have to pay a fee from your benefits, but you may have a much better outcome with legal assistance. Don’t quote me on it, but I have heard stories that if you have more than one super insurance policy, then you will be able to do multiple claims. I cannot recommend one law firm over another so you will really need to do your homework.


I hope this blog post has given you something to think over and creates conversation. I must be transparent and advise you that I am not trained nor experienced with this subject field. Information, legislation and regulations can change at any time so please let this blog just be an awareness post, I encourage you to do your own research.


MS can be an unpredictable monster, and without a crystal ball, I don’t think any of us can be certain of what lies ahead. The best thing we can do is make sure we are armed with the knowledge to be able to best protect ourselves for our future.


Thank you for reading!

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