As the end-of-year holiday season approaches, Carbone Lawyers is urging Victorians to use this downtime to perform a critical insurance check-up: reviewing their Total and Permanent Disability (TPD) Insurance and Income Protection (IP) Insurance.
The firm highlights that while many Victorians hold these policies, often automatically attached to their superannuation, a significant number remain unaware of whether they have coverage or what their policy entitlements are. This oversight can lead to severe consequences and financial hardship when a sudden illness or injury prevents them from working or even returning to work.
A Real-Life Lifeline: Uncovering Hidden Coverage
Carbone Lawyers recently assisted a client whose story underscores the vital importance of this insurance check. The health services worker found herself under severe financial pressure due to a protracted WorkCover claim.
“She was very distressed and struggling to pay her mortgage while waiting for her WorkCover claim to progress,” said Samantha Mercuri, a Senior Associate and Manager of Carbone Lawyers’ Epping Branch. “It was only through an in-depth search that we discovered she had a substantial, but forgotten, TPD policy attached to her superannuation. We fought hard to obtain her payout, which ultimately provided the essential financial breathing space she desperately needed to focus on her recovery without the constant stress of bills.”
Samantha wanted to remind Victorians that Superannuation TPD insurance claims can be pursued at the same time as any Personal Injury matter, such as a WorkCover or TAC claim. “It is important to get advice early, to avoid any unnecessary delays in claim lodgement”, she said.
Don’t Let ‘Set and Forget’ Become Financial Regret
The firm also warns that relying on an old policy is a significant risk. The insurance coverage accepted when a person first commenced their employment or opened a superannuation account may, over many years, become grossly inadequate for their personal circumstances.
“Life changes dramatically over time,” said Samantha. “The policy you put in place five or ten years ago likely won’t cover your current liabilities. If you have taken on a large mortgage, had children, or now have more people financially dependent on you, your coverage should reflect that.”
Carbone Lawyers recommends reviewing policies held through:
- Superannuation Funds: Often the primary source of TPD and IP.
- Private Brokers or Insurers: For tailored and potentially more comprehensive standalone policies.
Carbone Lawyers’ Action Plan:
Carbone Lawyers advises Australians to use the upcoming holidays to:
- Check Superannuation Statements: Identify existing TPD and Income Protection policies.
- Review Policy Details: Understand the definitions, waiting periods, and benefit amounts.
- Seek Advice: If an injury or illness is preventing you from working, contact a legal expert immediately to explore all potential claims, including TPD, IP, and WorkCover.
The time to check is now, not when tragedy strikes.
