Australians with a life expectancy of two years or less can now access their superannuation early on hardship grounds, but a law firm has urged superannuants to find out all their entitlements.
Until Wednesday, only those who had 12 months or less to live could get an early release of their super until the new law was introduced.
Commenting on the change, Slater and Gordon insurance lawyer, Annemarie Gambera, said terminally ill Australians seeking to access their super early need to consider the effect it could have on their existing super insurance policies and to decide if drawing down is the best option.
"Most superannuation account holders also pay premiums so that they have access through their superannuation to insurance benefits including life insurance and total and permanent disability insurance (TPD)," Gambera said.
"The terms of insurance policies are not changed by the new regulations¬ these insurance benefits can be worth tens or hundreds of thousands of dollars, depending on the fund, and may not be available once the super funds are withdrawn and the account shutdown."
Gambera said it is important for terminally ill patients to seek independent advice before drawing on their superannuation.
Questions Gambera said would be helpful were "Are you also entitled to make a TPD claim if you are no longer able to work? Would you be better off making a terminal illness claim? Do you want to leave some money in your super account so that you can continue to have life insurance coverage for your loved ones?"
"There are many benefits available through superannuation that will further asset a dying person and their family to secure their financial future."
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