While there are certainly benefits to consolidating your super fund accounts (paying fewer fees and having less paperwork to deal with is always a good thing), the benefit you may not realise in having more than one super fund account is that you could have more access to benefits (including TPD Claims) if you become unable to work due to injury or illness.
How does this work you say? Read on!
Most super funds offer insurance policies, such as TPD (Total and Permanent Disablement), which will pay a lump sum benefit to you if you become seriously disabled and are unlikely to be able to work again. Each fund has its own definition of TPD claims, and the definitions can vary from policy to policy. If you have more than one super fund, it is very likely that you hold a default policy for basic TPD coverage with each of those funds.
You may think you have just the one super fund account.
However, just by changing jobs or addresses, without telling their super funds, people can often end up with a number of super fund accounts that they don’t know about. As at June 2017, the ATO recorded over 6 million lost and unclaimed super accounts.
If you think you might have more than one super fund, the ATO can help you to search for lost super, or you can conduct your own search via your myGov account. You could hold a policy of insurance that you aren’t even aware of!
If you have more than one account, you may have more than one TPD policy upon which you can claim. These payments aren’t affected by any other claims you may have for the same injuries, nor are they affected by any other TPD claim you may make.
The value of a TPD benefit can range from a few thousand dollars to hundreds of thousands of dollars. If you are able to make a TPD claim on more than one policy, you could end up with a considerable lump sum, as well as any other compensation you may be entitled to claim arising out of the same injury or illness.
The information in this blog is not intended to be legal advice, and should not be taken as such. If you have any queries, contact us now to discuss your specific circumstances. If you would like to know how long you have in making a claim, check this out.
All initial consults are free of charge and all of our services are No Win, No Pay, with the exception of NSW workers compensation claims, which are funded by WIRO and therefore free to all workers covered by the NSW workers compensation scheme.