You may be able to get interim payments while your TPD claim is being assessed, but it’s important to keep in mind that they're not automatically given.
These types of advance payments can provide you with financial relief during the 6-12 month assessment period, and are typically between 10-50% of your estimated payout, but will require strong evidence of the hardship you're under and you might have to repay them if your claim is unsuccessful.
Approximately 70% of claimants experience financial hardship during the waiting period for a TPD payout. Interim payments can cover essential expenses like mortgage payments, medical bills and daily living costs when income stops because a claimant is unable to work because of their injury.
However, insurers and super funds don't advertise this option and will very rarely offer it voluntarily.
This handy guide will take you through exactly what TPD interim payments are, how to request them, the conditions and risks involved and practical alternatives to help you survive financially while your claim is being assessed.
Understanding TPD Interim Payments
What exactly are TPD interim payments?
TPD interim payments are lump sum advances paid out during the assessment process. They are separate from your final benefit, and are taken from either the insured TPD benefit itself (an advance on what you're claiming) or the superannuation balance that backs your insurance policy. They do not come from your retirement savings.
Unlike the standard super balance, these payments are part of the insurance component of your account. If you are approved for an interim payout,it will typically be tax-free and deducted from your final payout.
Key characteristics:
- Source: insurance benefit or the super balance backing your policy
- Tax treatment: tax-free if your TPD claim succeeds
- Processing time: 5-8 weeks after approval
Why aren't interim payments automatic?
Insurers and super funds aren't legally obligated to offer interim payments. They first arose from trustee obligations under the Superannuation Industry (Supervision) Act 1993, which states that they must act prudently and in members' best interests, but there's no mandate to provide advances.
Most super funds will only give out interim payments if you can prove you are under severe financial hardship. You will need to provide compelling evidence for your claim to be successful.
Your Rights and Entitlements
What you're entitled to:
- Request consideration: you can lodge a formal request for an interim payment from your super fund or insurer any time after lodging your claim.
- Reasonable assessment: as per ASIC Regulatory Guide 274, insurers should do their best to decide claims within 6 months and take hardship provisions into account during delays.
- Good faith treatment: insurers are obligated to act in good faith under the Insurance Contracts Act 1984, which includes the consideration of legitimate hardship requests.
- Internal review: if your request is denied, you can apply for internal dispute resolution (within 45 days) or escalate to the AFCA (Australian Financial Complaints Authority).
What you must do:
- Prove hardship: submit detailed financial statements showcasing your inability to meet essential expenses, such as bills, mortgage payments and medical costs, within 2 weeks of requesting interim payment.
- Maintain medical evidence: continue any and all treatment for your injury, and provide updated reports demonstrating that your disability meets TPD criteria throughout the waiting period.
- Sign repayment terms: agree to repay the advance (potentially with interest) if your final claim is denied. This will usually be required before funds are released.
Common Scenarios and Questions
I've been waiting 8 months with no income, can I demand an interim payment?
Quick answer: you can't demand a payment, but you can make a robust hardship request that's difficult for your fund to refuse as long as it’s supported by proper evidence.
What to do:
- Prepare a detailed hardship statement, along with bank statements, overdue bills and proof of rejected loan applications
- Obtain a supporting letter from your treating doctor which confirms your inability to work and all ongoing treatment needs
- Submit a formal written request to your super fund's trustee which clearly states "Request for Interim Payment Due to Financial Hardship"
- Follow up on a weekly basis both by phone and in writing if you don't receive a response within 2 weeks
Important note: super funds will assess hardship on an individual basis. Missing a mortgage payment once carries more weight than general financial stress, so you should document specific problems like pending eviction or disconnection notices.
Will requesting an interim payment hurt my final claim?
Quick answer: it won’t, but if your interim request is denied it likely indicates concerns about the strength of your claim that you should address immediately.
What to do:
- Consider your interim request as a "test run" for your main claim. If you identify any weaknesses, they should be rectified with additional evidence
- If your request is denied, ask specifically why in writing and use the feedback to strengthen your full claim
- Consider hiring a qualified and experienced TPD lawyer if your interim request is refused, as this may signal assessment problems ahead
Important note: accepting an interim payment won't reduce your final payout, it's just an advance that’s eventually deducted from the total you'll receive.
How is a TPD interim payment different from financial hardship or compassionate super release?
Quick answer: they come from different parts of your super for different reasons, and have distinct rules and repayment conditions.
What to do: first, you should apply for financial hardship release ($10,000 maximum annually) if you qualify, as you won’t have to repay it and it won’t affect your TPD claim. Then you should pursue TPD interim payments for additional funds if the hardship release isn't sufficient.
Important note: you can access multiple release types at the same time if you meet separate criteria for each.
My insurer offered 15% as an interim payment, is this fair?
Quick answer: between 15-30% is the typical range for interim advances, but you can negotiate for more if you have strong evidence and good legal support.
What to do:
- Compare the offer you receive to your policy's sum insured (e.g., 15% of $300,000 = $45,000)
- Calculate your actual financial needs for the remaining assessment period (3-6 months typically)
- Request a higher percentage if your hardship is severe and medical your evidence is compelling
- Have a lawyer review and negotiate if the offer seems unreasonably low
Important note: it’s common for insurers to start with conservative offers. A good TPD lawyer can negotiate increases of as much as 20-40% in appropriate cases.
What happens if I accept an interim payment and then my claim is denied?
Quick answer: it’s likely that you’ll be required to repay the full amount, potentially with interest, from your remaining super balance or other assets.
What to do:
- Read the repayment deed carefully before signing it. Pay close attention to interest rates (typically 5-8% annually) and collection terms
- Ensure you have strong medical evidence before accepting. It would be best to have a lawyer assess your claim's chances of success
- Keep the interim payment in an accessible account initially in case you have to make a repayment quickly
- Budget for the worst-case scenario while hoping for the best
Important note: repayments are usually deducted from your super balance first, but if it’s not enough the fund may pursue legal recovery from other assets.
Can I get an interim payment if my claim is already delayed beyond 6 months?
Quick answer: yes. In fact, any delay beyond ASIC's 6-month target will actually strengthen your case for an interim payment because of the extended hardship period.
What to do:
- Reference ASIC Regulatory Guide 274's 6-month timeline in your request, noting the delay
- Emphasise the compounding financial impact of your prolonged wait (e.g., debt accumulation, missed treatments, etc.)
- Request that your insurer expedite your claim while also providing interim relief
- Consider lodging an internal dispute if both the delay and interim refusal seem unreasonable
Important note: a prolonged delay without proper justification may indicate problems with the handling of your claim. Escalate to the AFCA if your fund doesn't respond appropriately to both concerns.
Step-by-Step Process to Request Interim Payment
- Gather hardship evidence: collect 3 months of bank statements, overdue bills, loan rejection letters and proof of your essential expenses. Document specific financial harm like pending eviction notices or disconnection warnings.
- Obtain medical support: request a detailed letter from your treating specialist confirming your total and permanent disability, inability to return to work and all ongoing treatment requirements. This will strengthen the likelihood that your final claim will be successful.
- Submit formal written request: write to your super fund's trustee (not just the insurer) with the subject line, "Formal Request for TPD Interim Payment: Financial Hardship." Include all evidence, specify the amount needed and reference your policy number and claim reference (send via both email and registered post).
- Engage legal representation: contact a no-win-no-fee TPD lawyer to review your request and negotiate directly with the fund. Legal representation typically increases both the likelihood of approval and the amount offered.
- Review and sign repayment terms: carefully read the interim payment deed, paying close attention to interest rates and repayment triggers. Have your lawyer explain obligations before signing (within 1 week of offer).
- Receive funds: once approved and documentation is signed, funds are typically released to your nominated bank account within 5-8 weeks, although certain funds process things faster in genuine hardship cases.
When to Seek Legal Advice
It’s always a good idea to get legal advice at the earliest opportunity, especially if:
- Your super fund denies your interim payment request. This could be a sign that there are problems with your main claim that need to be addressed immediately. A lawyer can identify issues with evidence and negotiate with the fund before final assessment.
- You're offered an interim payment with unclear repayment terms. Complex deeds could include unfavourable conditions. A proper legal review will protect you from agreeing to terms you can't meet.
- Your claim has been pending beyond 6 months without progress. Unreasonable delays may be justification for a complaint to the AFCA. Lawyers can expedite assessment while securing you vital interim relief.
- You're facing an imminent financial crisis (eviction, bankruptcy, etc.). Urgent hardship may warrant expedited interim applications or alternative super access options requiring immediate legal assistance.
- Your insurer conducts surveillance or requests IME during interim payment. These types of assessment activities will affect both interim and final decisions. Legal guidance will ensure you protect your rights during investigations.
Get Help Now
If you're experiencing financial hardship while your TPD claim is being assessed, early legal advice can help you access interim payments, negotiate favourable terms and avoid common mistakes that might jeopardise your final benefit.
Contact Smith's Lawyers today:
- Call 1800 960 482 for a free, no-obligation consultation about accessing interim payments and strengthening your TPD claim
- No upfront costs: we operate on a No Win, No Fee, No Catch® basis, so you pay nothing unless your claim succeeds
- Or request a call back: use the form below to have our experienced TPD team contact you within 24 hours to discuss your specific situation and hardship needs
Our TPD specialists have helped hundreds of Queensland clients secure interim payments and successful final claims thanks to their expertise in both superannuation law and negotiating with major insurers. Don't wait until you're facing eviction or bankruptcy, as early action protects both your finances and your claim.
