What happens if you are very ill and are no longer able to continue with work? Many people do not realise that they may have ongoing protection via their superannuation policies. Superannuation policies often have income protection or salary continuance for 1-2 years; and may even have an insurance component for any total and permanent disablement, meaning that you are not able to return to work. Before you actually resign from work, make sure you see a financial planner or a solicitor to ensure that you have exhausted all of your rights, particularly under your superannuation policies. If you have several policies, make sure you read your yearly Member’s Statement carefully as you may have multiple policies to protect you. You should also make sure that you do not try and obtain any funds from your superannuation fund on the basis of financial hardship as that may terminate any rights you may have for ongoing Income Protection and/or Total and Permanent Disablement. Make sure you seek legal advice before doing so.
McDonnell Schroder offer a first consultation free service which may save you from making a costly decision when you are not feeling well. Often when you do try to claim for Income Protection or disablement benefits from your Fund, the forms can be quite daunting. You have to obtain supporting certificates from your doctors and they may not be willing to help. Our specialised super section can help with any issues – please contact us if we can help.
