TPD Instalment Payments?

Our first poll in 2024 asks you to reflect on TPD products and the challenges – especially in this day and age – associated with whether the claimed condition can be objectively assessed as permanent.

In acknowledging at the beginning of this conversation that the bulk of TPD claims today can still be assessed under an objective set of measures, the focus of this discussion is on the growing proportion of TPD claims for which objective assessment is problematic at best.

This is one of the key talking points discussed at last month’s TPD Round Table, and reported separately this week (see: ‘Permanency’ Challenges Driving Future TPD Solutions?).

…would it be possible to structure a TPD cover offer that would pay by instalments…?

The premise of this proposition is that if the condition or event or episode on which a TPD claim is based can only be assessed subjectively – such as some chronic fatigue or mental health-related conditions – then would it be possible to structure a TPD cover offer that would pay by instalments, presumably with the permanency of the condition re-assessed over time?

This poll is the balcony-level part of the conversation, talking about issues in-principle, but where the nitty gritty in the details that would deliver such an outcome would naturally need to be considered, reviewed, developed and tested in fine detail.

For the purpose of this particular exercise, however, where do you stand at the balcony level? Do you think it makes sense to consider TPD instalment benefits as one possible component part in a future solution that can deliver a sustainable, affordable and accessible TPD product offer for Australian consumers?

Or do you think ‘lump sum’ should remain ‘lump sum’ – that it shouldn’t be tampered with – and you’re either TPD’d or you’re not?

As is often the case with our polls, there are plenty of perspectives from which you may choose to consider this question. Tell us what you think and we’ll report back next week…