A Matter Of Life And Death

Trauma Insurance is a better bet than accessing superannuation if an unexpected catastrophic health problem arises.

The Government gives billions of dollars in tax concessions to superannuation every year in the hope that it will reduce dependence on the aged pension. This is why the rules make it very difficult to gain access to your superannuation before your preservation age.

There are circumstances where superannuation can be accessed on compassionate grounds and they include needing funds if you are in danger of having a house repossessed, funeral costs for a dependant, and care for a terminal medical condition.

It gets tricky if you have a terminal condition and wish to access your superannuation benefit. Yes, it may be possible, if there is a terminal condition clause in an insurance policy (if you have one), held within your superannuation fund.   And, even if you can access the money, you may find there are taxes to pay, if you are under age 55.

A better option is to anticipate future problems and take out a trauma insurance policy. This policy will pay you a lump sum in the event of a specified illness such as Cancer, Stroke or Heart Attack etc.

A trauma policy cannot be held within Superannuation, so there are no access problems.

As we all know from experience, a serious illness or disability can strike at any time. At least having Trauma Insurance will help to ease the burden, at a time of great emotional and financial stress.