Advice about changing your superannuation policy
If you have a superannuation account with a super fund, you would have noticed in your statements that you are covered for total and permanent disablement or TPD. However when you lodged the application to claim, you were told that you are not eligible.
Life insurance providers that offer TPD or income protection insurance through your superannuation must strictly comply with the takeover terms set out by the Financial Services Council (FSC).
These takeover conditions set out by the FSC ensure that you will continue to receive the same level of coverage with your new insurer that you have done so with your previous one.
In most instances when you take out an insurance cover with a new insurer, they have their own new eligibility criteria such as certain waiting periods that you must meet at the time of the takeover.
If you held some form of coverage straight after the takeover, you are still covered for the same level even if your disability occurs after the takeover. You are entitled to have at the minimum, the previous amount of coverage from the takeover point.
In many instances, these issues are overlooked by your superannuation funds. When you ask your fund whether you are covered or not, in most cases they will only look at your current coverage and whether you meet the eligibility criteria for these. The fact in reality can be that you are actually covered by the terms existing immediately prior to the new insurance arrangements.
If you are told you are not covered due to not meeting your eligibility under your new policy, be sure to check when your new policy started what your coverage was immediately prior to your new policy.
Always read the fine print in the terms and conditions or product disclosure statement (PDS) of your super fund so you always know what you are covered for. It is also beneficial to seek legal advice if you are told you cannot claim for TPD.
If you need assistance with your superannuation claims or you are considering lodging an insurance or superannuation claim please contact us on 13 43 63 or via our online enquiry form for an obligation free assessment of your situation. Alternatively visit us at any of our Queensland offices in Brisbane, North Lakes, Logan, Ipswich, Toowoomba, Gold Coast, Sunshine Coast and Cairns.
Get to know our superannuation and disability claims solicitor
Adam Tayler is a Partner in Turner Freeman and managers the Brisbane and Cairns offices. Adam specialises in disability insurance and superannuation claims and he is also the manager of Super Claims Australia which is a Superannuation & Disability Claims specialist business conducted by Turner Freeman Lawyers.
Adam has authored various papers and presented to many legal education programs involving Workers Compensation and Insurance. Adam is a committee member of the Queensland Branch of the Australian Lawyers Alliance.