After suffering from an injury, you may find yourself in need of some money quickly, whether due to an inability to work, medicals bills, or modifications to your home. One place many people turn to in a situation like is their superannuation. You’ve spent a long time accumulating it, why not access it when you need it?
However, you might wonder if you have access to a super lump before your preservation age. Thankfully, you can receive a lump sum disability payment after suffering an injury depending on the extent of the injury. There is no limit to the lump sum amount of your own benefits that you’ve accumulated.
You will need to meet certain eligibility conditions to access your super benefits early due to permanent incapacity. First, you will need two approved medical practitioners to certify you suffered an injury that prevents you from ever returning to work in the same capacity in which you could before the injury.
Total and Permanent Disability Insurance Benefits
In addition to receiving a lump sum based on what you’ve already amassed in your super, depending on what insurance is included in your super you may be able to receive more funds.
Many superannuation programmes typically offer some kind of insurance coverage. It’s important to understand the rules associated with the insurance provided through your programme if you have it. Some policies only apply if you were working when the injury took place, and some necessitate you to opt-in to the insurance.
These super benefits are typically called Total and Permanent Disability (TPD) lump sums, disability benefits or both.
If you have the TPD insurance, you can avoid dipping into your super, allowing you to save it for its original purpose – your retirement.
You should file a claim as soon as possible as there is typically a qualifying period before the benefits come through. In some cases, this can be expedited.
Due to the need for medical assessment, these claims are complicated and can require considerable time before they’re approved. Do you have additional questions about whether you can make a lump sum super claim after an injury? Speak with the super experts at Gerard Malouf and Partners to learn more about your options.