Death and Disability Insurance and Your Superannuation Fund
All Australians are currently required to have a superannuation policy. Many of those compulsory policies include death and disability cover, but some don’t. You may, however, purchase death and disability insurance through your super fund if you don’t have it yet.
When Can You Collect?
Nobody likes to think of death or disability, but they are events that happen to someone every day. Many find it comforting to know that they are prepared that if they are disabled and can’t work, they will have enough money to live on for the rest of their lives. Obviously, death is easy to prove. But when is one considered disabled?
Disability standards can differ from state to state or insurance company to insurance company, but there are some typical standards and tests that are a good guideline of what to expect if you do become unable to work.
One of the basic tests for collecting disability insurance is whether or not you can earn income through your own physical efforts for any occupation in which you are reasonably qualified to participate due to experience, training or education. Another way of expressing this is whether or not you are able to make two thirds of your present income through physical exertion.