Who have you nominated as the beneficiary of your superannuation entitlements? Are your insurance arrangements appropriate for you?
Insurance and superannuation are rarely contemplated with enthusiasm. It is however vital that you consider both of these issues as soon as possible.
In the event of your death, the payment of your superannuation benefit will in most cases be determinated by a superannuation fund considering any directions that you have made through a death benefit nomination. By keeping your nomination(s) up to date you can make sure that the right people receive your superannuation promptly - this can remove considerable anxiety for your loved ones. It is important to bear in mind that there can often be significant insurance entitlements linked to superannuation which need to be taken into consideration. There are a number of nomination options available. The right one depends on your personal circumstances but include:
- lapsing or non-lapsing binding nominations
- non-binding nominations
- reversionary nominations for income streams and life time pensions.
Binding nominations provide relative certainty in relation to estate planning decisions, removing the control otherwise held by a third party. This is because without a binding nomination the trustee of the superannuation fund has an absolute discretion in distributing death benefits from your superannuation fund.
We find that many people have not paused to consider the "fine print" in their income protection, total and permanent disablement and other insurance policies. These documents are often written in legalese which most people do not understand. That's why you need a lawyer to break down the document into plain english so that you know whether the policy is appropriate for your needs - why pay the insurance premiums for nothing!
Call us on 08 8523 8400 for a free review of your superannuation nominations and insurance arrangements or email us at firstname.lastname@example.org.
"Death Benefit Nominations for your Self Managed Super Fund" by Nick Pullman (09/08/2016)
"Who will get your super if you die?" by Peter Ryan (09/01/2015)