Are you unable to work because of an injury or illness?
If you were aged between 15 and 65 at the date you stopped working and held an active superannuation account at that date, you may be covered for life insurance benefits including Total and Permanent Disability, Income Protection or Salary Continuance, and Death Cover.
This type of insurance is frequently offered by superannuation funds to its members on a default basis, so many people are not aware they are entitled to claim a potentially significant sum of money! Contact us today and we can make the necessary enquiries on your behalf to find out if you held insurance cover at the relevant time.
Total and Permanent Disablement or “TPD”
A TPD benefit is a specified lump sum paid to an insured member in the event they suffer total and permanent disablement (TPD). The standard TPD definition found in most insurance policies can be broken down as follows:
- you have suffered an injury or illness as a result of which you are not working and have not worked for at least 3/6 consecutive months (depending on the policy);
- at the end of the 3/6 month period off work, you are disabled to such an extent that you are unlikely ever to be able to engage in your usual occupation, or any occupation you are reasonably suited to perform based on your education, training and experience.
This means that you do not have to be unable to work at all. So long as there is no real chance that you could return to regular work in a role for which you are suited based on the skills and knowledge you have acquired through previous education and work experience, you may be entitled to a TPD lump sum benefit.
Income Protection or Salary Continuance
This type of benefit is paid on a month-by-month basis, after the expiration of the waiting period and for a defined benefit period such as two years or to age 65, in the event an insured member suffers total or partial disability and cannot work, or can only perform limited duties. The standard “total disability” definition found in most insurance policies can be broken down as follows:
- you have suffered an illness or injury as a result of which you are unable to perform the important income producing duties of your usual occupation;
- you are under the regular care of and following the advice of a medical practitioner; and
- you are not engaged in any occupation.
The monthly benefit is usually reduced by income earned from personal exertion as well as any payments made under workers’ compensation or other legislative scheme and through Centrelink.
It is important to note that the terms that apply to you will be contained in the applicable insurance policy entered into between your superannuation fund’s trustee and insurer. Insurance policies are complex documents, and each contains unique wording, so the information above is of a general nature only.
Contact us today for a free consultation with one of our experienced life insurance solicitors and we can provide you with preliminary advice as to your eligibility to claim a superannuation insurance benefit.