Permanent disability insurance payments (TPD) for mental illness

Money Management reported today here that The Financial Services Council (FSC) has released new data around mental health-related total and permanent disability (TPD) claims – noting that they accounted for 24.1% of claims paid in 2018.

The article noted that of all TPD claims that are finalised, data shows that 88 per cent are paid in the first instance, and higher at 91% for mental health TPD claims.

According to APRA data, in 2018 life insurers paid out more than $4.4 billion to 26,150 Australians who are not expected to be able to work ever again.