Fun fact (well… not that fun)
When it comes to claims, mental health conditions like depression and PTSD are now stepping up to the podium, taking bronze with around 25% of all claims.
If claims were an Olympic sport, gold would go to musculoskeletal issues your classic achy backs and dodgy knees making up a whopping 31% of claims. Silver would be claimed by general diseases, those random illnesses you can’t even pronounce, sitting at around 30%. And bronze? That goes to mental health conditions, because every now and then, your brain just decides, “yeah nah, I’m clockin’ off, mate.”
Claim delays and time frames “faster than a snail… but only just”.
According to the Life Insurance Code of Practice, once you’ve jumped through all the paperwork hoops and handed over every last document (including that form you didn’t even know existed), a TPD decision generally takes about 3 to 6 months. (ASIC, Curo, ABC yes, actual sources, not my aunt’s facebook post.)
But… mental health claims like to take the scenic route.
They often stretch out to 6 to 12 months, thanks to waitlists for psychiatric assessments and the “please hold” music while reports are tracked down.
Even though the average super based TPD claim zips through in about 3 to 4 months, mental health claims often sit there twiddling their thumbs until a psychiatrist finally weighs in.
So, if your brain’s on strike and you lodge a claim, just know
“Thanks for calling… your claim is important to us… please enjoy 6 to 12 months of soothing hold music.”
According to ASIC back in 2019 a quarter of all TPD claims paid were for mental health conditions. Yep, 25% of payouts are because the brain pulled a classic sickie and vanished like your mate when it’s his shout.. And that slice of the meat pie has only grown over the years.
Fast forward about five years to September 2024 and insurer TAL spilled the beans 29% of TPD and income protection payouts were due to mental health conditions PTSD, depression, you name it. That’s up from 23% the years before.
In other words, mental health is absolutely climbing the leaderboard.