Published 29 Mar 2017
Superannuation is designed to provide you with the money needed to fund your retirement, so that you can enjoy your golden years without having to worry about your finances.
But what if things go wrong? If you suffer a serious injury or illness, you may be unable to work, which could stop you paying into your superannuation fund, leaving you without a job and essential financial support.
Fortunately, many people have total and permanent disability (TPD) or critical illness cover as part of their superannuation. This means you can receive a lump sum payment, as well as the early release of your accumulated superannuation, provided you meet the criteria specified in your policy.
One area where some policyholders get confused, however, is with regards to the number of claims they can make on their superannuation fund.
Understanding your superannuation
Every super fund provides different insurance for its members, so it's worth checking your documentation to gain a better understanding of what level of cover is offered.
If you have various types of insurance, it's possible you may be able to make more than one claim. For example, your fund may offer income protection and TPD insurance, enabling you to claim against both if your situation fulfils the necessary stipulations.
In other words, you may suffer an accident that causes you to take time off work. Typically, income protection payments are provided to help you financially until you are healthy enough to return to your job.
However, after making an income protection claim, you may discover that your injuries or illness constitute a permanent disability and you're unable to go back to employment. In these circumstances, you could also be eligible for a TPD payout.
Do you have more than one super fund?
Australians commonly pay into more than one super fund during their lifetime, particularly if they've changed jobs regularly over the years.
Some of these funds may get forgotten, but they could still provide insurance payouts for people who meet the right criteria.
In fact, you may find that you can make a TPD or critical illness claim against several of these funds in addition to any benefits you receive from your current super provider.
Would you like to learn more about making multiple claims against your superannuation fund? Please contact Gerard Malouf & Partners Superannuation Lawyers today to discuss your circumstances.