Terminal vs. Death Benefit Claims

Understanding the Differences Between Terminal Illness and Death Benefit Claims 

In the context of superannuation, comprehending the distinctions between terminal illness and death benefit claims is essential for informed decision-making. Claimsplus Lawyers offers a detailed guide to help you understand these two types of claims.

Distinct Characteristics of Each Claim Type:

• Terminal Illness Claims: These are applicable when a member is diagnosed with a condition likely to lead to death within 24 months. The aim is to provide financial support while the member is still alive.
• Death Benefit Claims: Activated post the member's demise, these claims are designed to support the nominated beneficiaries or dependents of the deceased member.

Eligibility and Required Criteria:

• For Terminal Illness Claims: Validation of the illness's terminal nature is required through medical certification from two registered practitioners, including a specialist.
• For Death Benefit Claims: Initiated by the beneficiaries or the legal representative of the deceased's estate, these claims follow the death of a superannuation member.

Key Factors to Consider:

• Tax Implications: Terminal illness claims typically offer tax-free benefits, whereas death benefit claims can have varying tax impacts depending on the beneficiary’s status and the benefit's components.
• Differing Claim Amounts: The available amount for each type of claim can vary, influenced by factors such as insurance coverage within the superannuation, the fund balance, and the fund’s specific policies.
• Processing Timelines: Terminal illness claims generally receive expedited processing due to their urgent nature, while death benefit claims might follow a different timeline, dependent on the super fund’s procedures and the validity of beneficiary nominations.

Guidance from Claimsplus Lawyers: 

Navigating the nuances between terminal illness and death benefit claims can be complex. Claimsplus Lawyers is committed to guiding you through this process. Our expertise in superannuation law enables us to provide you with clear and concise insights. Whether you have queries about terminal illness or death benefit claims, or need assistance with either, Claimsplus Lawyers is here to support you.

Contact Claimsplus Lawyers for Personalised Support: For any questions or specialised assistance regarding terminal illness or death benefit claims in superannuation, please contact Claimsplus Lawyers. Our team is dedicated to helping you understand and successfully navigate these distinct superannuation claim types. 

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