Superannuation and Trauma Insurance

Superannuation is the retirement benefits procured by an employee after he or she gets retired. In Australia superannuation benefits is supported and encouraged by the government. The superannuation fund is built by the contributions made by both employees and employers during the period of the job. Government has made strict rules to prevent a person from early access of the superannuation fund except in some limited circumstances such as extreme financial hardship or funding for one’s emergency medical treatment.

The present laws and regulations states that a person can not use one’s superannuation fund to make payments for accidental insurance. However one can use one’s superannuation fund to pay for the Life insurance, Total Permanent Disability in any Occupation, Income protection Insurance as usual.

Consulting a leading insurance agent to discuss one’s insurance needs and requirements is one of the best ways to get the maximum benefits and meet one’s insurance needs in a prompt and seamless way. One can easily get the customized guidance through a well experienced insurance agent that will help one select the most suitable trauma insurance cover with the lowest premium and maximum benefits.

Trauma insurance can be either purchased as a separate policy or it may be procured along with the life insurance as an additional accident insurance cover benefit. Superannuation corpus can be easily used to fund life insurance as this does not result in any Tax deduction on one’s income. Besides this Tax incentives are also offered on the same.

The maturity benefits or proceeds of trauma insurance are not tax deductible if it is used to contribute to a super fund. However the benefit or finances received from a super fund are subject to Tax Deductions. The deduction amount depends on the following factors:

  • The amount of income that is taxable and that which is non taxable
  • age of the person whether he/she is over 60 or less than that
  • How the pension benefit is paid either as a fixed monthly sum or as a lump sum
  • The conditions for immediate payment claim that can be physical disability, death or long term illness.

 Want to deposit your Trauma Insurance Benefits to Super Fund

If you want that the financial benefits you receive from your trauma insurance is directly paid to a Super fund then you must ensure that you satisfy any of the following preconditions that is important for its release:

  • You have retired after the maturity age
  • You have voluntarily decided to get benefits as per transition to retirement rules
  • You have reached to 65 years of age.

One can also procure Super Fund benefits before retirement for which one needs to satisfy any of the following conditions:

Compassionate grounds – if you need to pay for emergency treatments, making payment of mortgage or expenses of funeral.

Temporary incapacity – if you have met with an accident that has led to temporary physical disability due to any physical or mental problem

Permanent incapacity –Permanent Disability in which a person loses one’s job and profession is eligible to receive all one’s super benefits. However in such a case one needs to get the verification done from two certified medical professionals.

Death – In case of death of the person his or her nominee is likely to get all the Super benefits

 Get your Trauma insurance cover separate from Superannuation

Many people prefer to get their trauma insurance cover outside the superannuation in order to get the maximum benefits from the former. Although it is cost effective to hold trauma insurance within the Superannuation but getting the insurance cover outside superannuation facilitates one to get the benefits in a prompt and seamless way.

Unlike strict rules for Superannuation benefits one is less likely to face any hassle in getting immediate benefits from one’s trauma insurance policy. One simply needs to authenticate one’s medical condition with the certified doctors and ensure that the same is exactly covered through the insurance policy. Moreover the benefit accrued from the trauma insurance is free from any tax deductions.

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Income Protection  Life Insurance