Accessing Superannuation and Your Insurance Benefits

 

Total and Permanent Disability Claims

Generally, you are entitled to a superannuation lump sum benefit if you are partially and/or totally permanently disabled and unfit for your old job or any other suitable job that relates to your education, training and experience.

If you are no longer able to work and no longer able to perform all duties of your usual occupation full time, either by way of an injury or any medical reason such as a heart attack or stroke, you may be able to claim a lump sum benefit through a TPD claim in addition to workers compensation or weekly or monthly superannuation payments being paid to you already.

Superannuation funds pay close attention to the insurance policy related to your super account. This dictates the specific criteria which needs to be satisfied to be have a TPD claim approved. Many important dates and definitions are also found here. We’ll mak

Permanent Incapacity Claims

After investigating if you are covered for TPD and discovering that you are not, you may still be able to withdraw your account balance based on a permanent incapacity claim.

Superfunds still require special medical reports before releasing your account balance.

After making the initial investigations for TPD cover we often find that people have several lost superfunds still containing substantial account balances. A permanent incapacity claim is one avenue to access that money when you are unable to work because of an injury or illness.

Compassionate Grounds and Financial Hardship

Superannuation funds will allow members to withdraw, usually $10,000 a year, a portion of their account balance on compassionate grounds or financial hardship grounds. Withdrawal based on compassionate grounds usually relates to medical issues. Financial hardship claims are approved when member can provide evidence that they are struggling financially.

Members can contact their superannuation funds to make these claims.

Superannuation Death Benefit Claims

Superannuation death benefit claims are lodged by partners, children or next of kin of the deceased.

From our experience many people are under the impression that superannuation benefits are ‘taken care of’ after a death or that dependents are perfectly able to collect the benefit by contacting the fund. In many instances this is not the case and the procedure can become complicated.

So, what will the amount payable may be made up of in a death benefit claim? Firstly, in 2013 the Annual Superannuation Bulletin reported the total value of superannuation assets to be $1.62 trillion dollars. This suggests that superannuation benefits are a valuable asset.

The death benefit may be made up of:

1. the account balance at the time of death. This includes compulsory contributions made by the employer. The member may have chosen to increase their contributions so even if the person is young, account balances can still be valuable. Any amounts rolled over from other funds can also be included, and
2. any insurance coverage payable, the amount of which depends on the member’s age at time of death and the level of insurance cover.

If the deceased didn’t have insurance cover the total amount will be made up of the superannuation account balance only.

Once we have submitted your claim, the Trustee of the superannuation fund will have the discretion to pay any benefits to:

1. The deceased’s Estate (in which case the superannuation death benefits will be distributed in accordance with the Will of the Deceased. If there is no Will, then the balance will be distributed in accordance with the rules of intestacy which apply if the Deceased had no Will); or
2. The person claiming the superannuation death benefit; or
3. Any other people who were financially dependent on the Deceased.

This all depends on whether or not a binding death nomination is in place.

It is very important to lodge a superannuation death benefit claim correctly the first time. You will need the correct supporting information and may need to consider whether any other parties can also claim the death benefit. Consideration of the time limits which may apply to object to any decision of the Trustee is also important.