Published: 05 April 2014
Author: Tanya Neilson
Can't work because you're injured? Most Super plans come with income insurance.
- Millions paid out by Super as income support
- Most Super plans come with income insurance
- Benefits are additional to WorkCover or TAC benefits
Super Funds pay out millions of dollars in income protection and disability insurance each year to injured workers who are unable to return to work full time, or not at all.
This money is paid through the insurance schemes that are almost always an overlooked feature of people’s Super. They work in much the same way as any stand-alone disability or death policy and come packaged in your Super plan.
Claims can be made on the insurance policy contained within your Super fund no matter where or when you were injured. It needn’t be at work. It could have been a road accident for example.
The entitlement is determined simply on the basis of whether you are able to work.
Furthermore, you can access your own Superannuation savings early, or before retirement age, should you be unable to return to work – without any financial penalty.
There are two types of disability insurance, one for total and permanent disability, which pays a lump sum if you can prove that you are unlikely to work again, and one called income protection that replaces your income for a period of time while you cannot work. The former may offer more money but is harder to prove. The second type is easily accessed.
If you are interested, you can check on the policy details of your Super yourself, or you will find that some law firms, like ours, offer a free service to do the checking for you.
Remember: Super disability benefits are additional to your WorkCover or TAC entitlements.
For free advice on Super payouts and income call 1300 366 441.
Further Information: Superannuation Lawyers