If you are terminally ill, you can claim your superannuation early as well as any terminal illness benefits that may be included in your super policy. If you have terminal illness coverage and are medically certified by two registered medical practitioners that your illness will result in death in 12 to 24 months, you can claim a benefit to assist with a range of things. This benefit can help to pay for accommodation close to specialists, transport to and from medical facilities, a replacement for your lost income, and the capacity to tick some things off your “bucket list” like trips away with your loved ones.
The terminal illness benefit associated with your super is any lump sum insurance covered by your super, as well as all your superannuation paid out as one payment. If you have separate terminal illness insurance, this will pay out the lump sum you agreed on when you purchased the policy.
A terminal illness benefit shouldn’t affect your Centrelink payments if it is coming out of your superannuation. Your Centrelink payments may be affected, however, depending on what you spend the money on; if you purchase an income stream with the lump sum, this can reduce or stop your payments depending on the income it provides you.
No, the terminal illness benefit is not a taxable payment.
It is not a legal requirement to have representation for a terminal illness claim. However, it is highly recommended to seek the advice and guidance of an experienced lawyer such as LHD Lawyers. Our specialist lawyers can help you understand your rights, guide you through the process, and provide support during what can be a challenging time. We can also assist in gathering and presenting the necessary evidence to support your claim and negotiate on your behalf with the insurance company. This can help increase your chances of a successful claim and ensure that you receive the maximum benefits available to you.
A terminal illness benefit claim can be paid in several ways, depending on the policy and the individual’s preferences. These include:
- Lump sum payment: A one-time payment of the full benefit amount is made to the policyholder upon approval of the claim.
- Installment payments: The benefit amount is paid in regular installments over a specified period of time, such as monthly payments for a certain number of years.
- Income stream: The benefit amount is paid out as a regular income stream for the rest of the policyholder’s life or for a specified period of time.
- Combination of options: Some policies may offer a combination of lump sum, instalment payments, and income stream options to suit the policyholder’s needs and preferences.
It’s important to review and understand the policy terms and options available before making a decision on how to receive the terminal illness benefit claim. Contact LHD Lawyers today so we can work through the options together.
If an insurer declines your terminal illness claim, you have several options. Firstly, you can ask the insurer to review their decision and provide additional information or evidence to support your claim. Alternatively, you can make a complaint to the insurer or the relevant ombudsman service.
If these avenues are unsuccessful, you may need to seek legal advice to challenge the insurer’s decision. This can involve lodging a dispute with a dispute resolution scheme or pursuing legal action through the courts.
You can contact LHD Lawyers today for a free case evaluation to review your declined terminal illness claim.