How to Make a Successful TPD and Income Protection Claim

Emm

Emm

Member
Both TPD and income security might provide financial assistance when you are unable to earn an income and are unable to perform on-the-job duties. But the major difference is in how your income support is paid and the circumstances surrounding your disability. With TPD, usually, there is only a fixed lump sum benefit provided when completely and permanently disabled and it's unlikely that you will ever work again in any job or in any capacity. Income security provides a range of options for those that have been disabled or who have a limited ability to earn and receive an income.

The two policies differ primarily in their coverage and the terms of their termination. With income security, your benefit continues even when you become incapable of performing regular functions. For those who are eligible for social security, a benefit level of up to about thirteen thousand pounds per month is offered. The benefit is then withdrawn from your monthly income and paid directly to the lender. With TPD, the monthly benefit is cut by about one-third.

In some cases, you might be able to continue receiving your TPD or income protection insurance benefits while you are waiting for your redundancy to become permanent. To check whether you qualify, contact an employment solicitor as soon as possible. Some companies will offer sickness absence benefit if you are unable to return to work within a few months after you become ill. You should check with your employer whether they have this kind of arrangement or not. If they do, you should inquire whether they are covering you for sickness absence benefits, too. While the condition may mean that you can't keep working, it may be worth trying out for a few months before you find out.

As soon as you become permanently unable to do the job you are hired for, it is necessary to tell your employer about the illness. You will need to give them the date of your diagnosis along with details of the illness and of the period of time you were unfit for work. Your next step will be for the Employment and Support Providers (ESP) to assess your case. In some cases, they may decide to give you interim income support to allow you to keep your regular income until you are better. Your condition will affect the amount of support extended to you, so it is important to ask the ESPO about the impact of your illness on your entitlement to future allowances.

Once you are assessed as being unable to do work, your benefits will be stopped. You will also need to find alternative sources of income to ensure that you won't be back in default of repayments for at least three months. This is usually a complex procedure, which will be explained to you during an initial meeting with an employment and support advisor. The advisor may decide to give you a lump sum payment or provide you with Allowance payments. There may also be a requirement to take drug treatment or counselling. Your income protection insurance cover will continue as long as your condition doesn't return, but any excess money that you would have been entitled to will be taken out by the Jobcentre.

Once you are deemed fit to return to work, or start receiving disability benefits, TPD and income protection claims may be made against your former employer. If you have had a long-term illness which has meant you have been unable to return to work before, you may be able to make additional medical contributions when claiming for superannuation and/or income protection insurance benefits. In addition, the UK Law Commission will be able to help you claim additional accident benefits should you have been diagnosed with a serious road traffic accident which was caused by your own negligence. If you have lost your job through lay off or voluntary redundancy, you may be eligible to claim up to two years of loss of income due to redundancy.​
 
Wisdom01

Wisdom01

Valued Contributor
I think income protection insurance is actually very important , atleast you would get coverage incase you are facing income earning issues and most times could be due to factors like illness and others ,you would get the necessary coverage for that particular risk at the right point in time tho
 
Nite

Nite

Verified member
Because of an accident, not being able to return to work can have a tremendous impact on your finance. If due to personal injury or illness, you are left unable to work permanently or temporarily, you may be eligible to claim Total and Permanent Disability insurance or Income Protection insurance. While both of these insurances are designed to cover different circumstances, well in some situations you may actually be able to claim both at the same time.
 
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