Claiming a terminal illness benefit
A terminal illness diagnosis is confronting and can be a frightening time
Often approaching the end of life comes with increased medical involvement and a desire to prioritise the things important to you and your loved ones. A terminal illness benefit payment can ease some of the financial worries by providing early access to your super.
What is a terminal illness claim?
If you are diagnosed with a medical illness that will reduce your life expectancy to 24 months or less, you can claim the early release of your super account balance together with any additional life insurance that you have. Once your claim is approved, the total benefit payment is tax-free and paid directly to you.
Am I eligible to claim?
To be eligible for payment of a terminal illness benefit you will need to meet the definition of a ‘terminal medical condition’ as outlined by superannuation law.
- Superannuation Industry (Supervision) Regulations 1994 - Reg 6.01A defines this as:
A terminal medical condition exists in relation to a person at a particular time if the following circumstances exist:
- (a) two registered medical practitioners have certified, jointly or separately, that the person suffers from an illness, or has incurred an injury, that is likely to result in the death of the person within a period (the certification period) that ends not more than 24 months after the date of the certification;
- (b) at least one of the registered medical practitioners is a specialist practicing in an area related to the illness or injury suffered by the person;
- (c) for each of the certificates, the certification period has not ended.
Insurance cover is also subject to assessment and approval by the Insurance Policy relevant to your cover.
What happens when you make a claim
Complaints
If at any time you are dissatisfied with any aspect of your claim, you can lodge a formal complaint. Our complaints handling information is available on our website.
We aim to resolve all complaints as soon as possible. However, if we have not resolved your complaint within 28 days, we will provide a progress update. A final response will be sent to you no later than 45 days for complaints about financial services including advice, and no later than 90 days for complaints about superannuation.
How long does the claim process take?
The length of time depends on personal circumstances and availability of information required from you and your doctors. Together with our Insurer, we prioritise and usually finalise most terminal illness claims within one month from when both medical certificates are received.
Need financial advice?
We offer expert financial advice services through our licensed financial planners. Our advisers can provide assistance on the likely impact of any benefit payment to your personal financial situation and help you make informed decisions about your benefit.
To meet with a financial planner, please call 1300 963 720.
What if I’m receiving income protection payments?
Eligibility to receive a terminal illness benefit does not affect any income protection payments you may be eligible to claim. Any payments you are receiving will continue for as long as you satisfy the terms and conditions of the income protection or salary continuance policy.
What if I’m still working?
You are eligible to claim and receive a terminal illness benefit payment whilst you continue to work as long as you satisfy the terms and conditions of a ‘terminal medical condition’. Payment of the benefit remains tax free and does not require to you cease work or reduce the hours or duties of your job.
This guide is provided for general information only. It does not take into account your personal objectives, financial situation or needs and should therefore not be taken as personal advice. You should consider whether it is appropriate for you before acting on it and, if necessary, you should seek professional financial advice.
Financial advice may be provided by Togethr Financial Planning Pty Ltd, ABN 84 124 491 078, AFSL 455010, (“TFP”), trading as MyLife MyAdvice. TFP is a related entity of Togethr Trustees Pty Ltd.