7 Ways to Use Your Superannuation Policy

In most cases, you can only access your superannuation savings upon preservation (retirement) age. However, this condition can be negotiated in some extreme financial situations. Although the terms to free the funds are strictly limited, it is fortunate that there are ways you can access your superannuation funds before hitting retirement. It is important to get legal help as you navigate through the process. While the circumstances to access your superannuation money is very limited, here are some ways you can use your superannuation policy.

Terminal Illness

If you are battling with a terminal illness that is likely to lead to your death within 24 months, you can release your superannuation funds without any limitation or taxation. In this case, you need to provide supporting medical evidence from at least two specialists, and one of them must have relevant knowledge in the area of your injury or illness. It is recommended that you seek legal guidance in advance when releasing your super funds because you may also be entitled to insurance benefits. The withdrawal of your superannuation funds on terminal related reasons may affect your terminal illness insurance, so legal guidance from superannuation lawyers Brisbane can ensure your super policy does not affect other benefits.

Permanent Incapacity

You may also access your superannuation funds if you permanently suffer from a mental or physical condition that is likely to stop you from working before your retirement age. Permanent incapacity means that you’re likely not to engage in employment within your training, education, and experience. In this case, you may need to provide medical certificates from at least two doctors to certify your claim. If you obtain your super funds on the above grounds, you may also be entitled to Income Protection Insurance or Total and Permanent Disability benefits. You can seek legal advice to determine if your superannuation policy qualifies for the benefits.

Financial Hardships

If you are facing extreme financial challenges, you can apply for your superannuation money. This requires that you have continuously received government financial support for at least 26 weeks and demonstrate that you cannot afford necessary daily expenses. You may also be needed to show that you are unable to support your immediate family financially through savings or assets reasonably. In this case, there may be limitations regarding the number of times and the amount you can release.

Funeral Expenses Withdrawal

You can also apply for your super funds to cater for funeral expenses. However, you will only be eligible for the funds if it’s the funeral of a dependent, and you need financial support to pay for funeral expenses. You can also access the funds if you can demonstrate that you cannot pay for the funeral expenses in any other way apart from your superannuation.

Palliative Care

You can also apply for your superannuation funds earlier to pay for palliative care bills for either yourself or a dependent. In this case, you must demonstrate that you or your dependent are battling a terminal illness and that you need support in paying for the expenses. You must also show that you cannot afford to pay for palliative care expenses without the help of your superannuation funds.

Losing Your Home

You may be allowed to access your super funds if you are about to lose your home. In this case, you must show that your lender is threatening to sell or repossess your property due to mortgage balances. The property under threat should be your residential place, and you must be directly responsible for the mortgage payments. You should also demonstrate that you cannot pay for the mortgage through savings or other assets. However, you may not be eligible for the funds if you are living in rentals, your bank has not issued threats, or if the property is owned by one of your family members or you want to use the money for investment purposes.

Home Modifications

You can make an earlier application for your superannuation money if you want to pay for a home modification in the case of a severe disability. You can also access the money if you or your dependent needs disability aids, and you cannot pay for the devices without accessing your superannuation funds. However, you must make sure that the disability condition is diagnosed as severe.



Posted by By: Kim Hemphry

About the Author:

Kim Hemphry is a passionate expert in the areas of Legal Matters, learning and education. She has been featured on over 50 leading Legal and education sites and is a modern thought leader in the field. More about her interests and articles on her site – http://kimhemphry.com/


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