If you've previously received a Total and Permanent Disability (TPD) payout, it's natural to assume that new insurance is off the table. It's a question we're asked more often than you'd think and the honest answer is: possibly, but it's worth actually asking rather than assuming the door is closed. 

The Short Answer 

A previous TPD claim doesn't automatically mean every insurer will decline a new application for Life, TPD, Trauma or Income Protection. It is, however, significant information insurers will want to understand. They'll typically look at: 

• Why the TPD claim was made 

• The medical condition behind it 

• How long ago it occurred 

• Your current health, symptoms and medication 

• Whether you've returned to work, and in what occupation 

• Your treatment and medical history since 

• Whether you still see medical or mental health professionals 

• The likelihood of the condition affecting your ability to work again 

Each insurer weighs these factors differently, which is exactly why outcomes can vary significantly from one insurer to the next. 

A Real Example: Insurance After a TPD Claim Due to PTSD 

One client had made a TPD claim through his super fund in 2021 after developing PTSD from work-related circumstances a claim that also ended his existing Life Insurance at the time. Years later, his circumstances had changed: a different occupation, most symptoms resolved, no medication, and ongoing regular check-ins with his GP and psychologist. 

Rather than assuming he'd be declined, several insurers were approached directly to discuss his situation. The response was more encouraging than expected. Most insurers indicated they'd consider all four types of cover, though not necessarily on standard terms: 

• Life Insurance - potentially offered 

• Trauma Insurance - potentially offered 

• TPD Insurance - potentially offered, with a mental health exclusion 

• Income Protection - potentially offered, with a mental health exclusion 

The mental health exclusions on TPD and Income Protection were likely to be non-reviewable in future, and insurers wanted a brief medical report from his treating doctors.

Why a Pre-Assessment Matters 

When someone has a significant medical history or a previous claim, submitting an application without first understanding how insurers are likely to view it can create unnecessary uncertainty. A pre-assessment means approaching insurers with the relevant details before applying, to get a clearer read on likely outcomes. 

Different insurers genuinely assess the same history differently one may decline, another may offer cover with an exclusion, another with a loading, another on different terms again. A pre-assessment doesn't guarantee cover will be offered, but it gives a far clearer picture before you commit to a formal application. 

What Might Happen If You've Had a TPD Claim Before 

Depending on the condition and your current circumstances, an insurer may offer standard cover, offer cover with an exclusion, apply a loading, offer some types of insurance but not others, request more medical information, defer the application, or decline it. The outcome depends heavily on why the original claim was made and how your circumstances have changed since. 

Income Protection Can Be More Complicated 

Income Protection involves assessing your ongoing ability to work and the likelihood of future disability, so a previous claim particularly a mental-health-related one can carry more weight here. An insurer may still offer Income Protection while excluding claims arising from mental health conditions. The policy can still provide real value for other conditions, but it's important to understand exactly what's excluded before taking it out, rather than just asking whether you'll be "accepted." 

Trauma Insurance Is Assessed Differently Again 

Trauma Insurance generally pays out on diagnosis of a specified condition, and the assessment can differ from TPD or Income Protection. In some cases, an insurer may be more comfortable offering Trauma cover even where they're more restrictive on TPD or Income Protection it depends on the individual circumstances. 

A Previous Claim Doesn't Necessarily Close the Door 

The biggest takeaway from this kind of case: don't assume a previous claim rules out new cover. Underwriting is based on your circumstances today as much as your history. In the PTSD example above, the passage of time, a change in occupation, improved symptoms, no ongoing medication, and continued engagement with treating professionals all contributed to a more favourable picture. That doesn't mean every case with a previous TPD claim will land the same way every application is assessed individually, and no outcome is guaranteed. 

The Key Is Asking the Question 

If you've previously made a TPD claim, particularly for a mental health condition like PTSD, depression, or anxiety the answer to "can I get insured again?" isn't necessarily no.

What matters is understanding what insurers are likely to offer, what exclusions or loadings might apply, and whether the resulting cover actually suits your circumstances. Sometimes the only way to know is to ask. 

Want to understand your options after a previous TPD claim or complex medical history? Get in touch for a confidential pre-assessment by clicking here. 

FAQs 

Can I get Life Insurance after a TPD claim? Potentially, insurers consider the reason for the claim, your medical history, and your current health. 

Can I get TPD Insurance again after a previous TPD claim? It may be possible, though often harder, cover may come with an exclusion, loading, or other conditions. 

Can I get Income Protection after a TPD claim? Potentially, though a mental-health-related original claim may lead to a mental health exclusion on the new policy. 

Can I get Trauma Insurance after a TPD claim? It may be possible, Trauma Insurance is assessed differently from TPD and Income Protection. 

Will insurers know about my previous TPD claim? You'll generally need to disclose it, and insurers may request medical reports to assess your application. 

Can a mental health exclusion ever be removed later? Not necessarily, some exclusions are non-reviewable, depending on the insurer and policy terms. 

Should I apply directly, or get a pre-assessment first? Understanding how different insurers are likely to assess your circumstances before applying can be worthwhile, since outcomes vary between insurers. 

The information in this article is general in nature and does not take into account your personal objectives, financial situation, or needs. Before acting on any information, you should consider its appropriateness having regard to your own circumstances and, where relevant, obtain a copy of the applicable Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making a decision. 

Mortgage Protect Pty Ltd ABN 83 648 874 604 is an Authorised Representative (No. 1286095) of Australian GA Solutions Pty Ltd ABN 72 616 366 360, AFSL No. 547939.