STOP! Read this before you make an Early Release of Superannuation due to your permanent injury or illness.
In this blog we will explaining what other payment entitlements (ie; Lump Sum Compensation) you have in addition to accessing Early Release of Superannuation due to your permanent disability or injury.
If you are injured or permanently disabled, you may be looking for a quick sum of money just to survive and bear the day to day expenses. One of most common options for you could be an early superannuation release where you will receive the money saved in their Superannuation account before retirement age of 65 or plus.
However; what you may not yet realise is that although you could be entitled to early release of Superannuation, you may additionally have an automatic disability insurance policy for which you can be entitled to generally a large sum of compensation money.
You see, most Superannuation providers have an automatic Life Insurance cover. So if you have been contributing towards your Superannuation actively then there is a likely chance that you may have Life Insurance Cover. Generally your Life Insurance Cover should cover three different type of insurances:
- When someone dies – This is called Death Insurance Cover. Generally, if someone has Death Insurance cover and if they die, their beneficiaries will be entitled of making a Death Insurance claim which can be a large sum of compensation.
- When you are unable to work for a certain amount of time due to your sickness or injury. This is called Income Protection. For example, if you fractured your hand and cannot work for 6 months, then you may be entitled to claim for Income Protection payment for the time you are off work. The amount you will receive will depend on how much Income Protection you are covered for. Please note each policy may have different waiting periods.
- When you are permanently disabled or ill and can never return to you work. This is called Total and Permanent Disability (TPD) Cover. If your injury or condition has been diagnosed as severe and permanent which restricts you from returning to your work, you are then entitled to make a TPD claim as part of your Life Insurance Policy. The amount of compensation cover will depend on various factors; ie; your age, salary, occupation etc. However as mentioned above, if you have been contributing towards your Superannuation through your employment then the chances are that you have TPD insurance cover and you can make a claim for a lump sum payment.
The purpose of this blog post is to inform you about the hidden and automatic insurance cover that you may already have. Many Australian’s are unaware of these insurance policies and cover. Hence thousands and thousands of Australians are not making a TPD claim despite having insurance cover as part of their Superannuation policy.
We want to help as many Australian’s as possible when making a Life Insurance claim. Hence we put out weekly blogs to educate our audience and explain everything related to Life Insurance and specifically TPD cover.
Still need more information? Check out our other blogs below.
If you’re looking for a trusted lawyer to guide you through the whole process, just give us a call at Shaheen Legal on (02) 9854 5552.
