I understand that a lot of us pay a 'default insurance premium' (unless you opted out) to super fund every year for unemployment, death cover, injury, etc. In the current situation if someone loses a job, will the super fund insurance pay any amount?
Would super fund pay you during Covid related unmployment?
virhlpool on 22/05/2020 - 23:05
Last edited 22/05/2020 - 23:05
Last edited 22/05/2020 - 23:05
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I see.. so if someone lost a job for a medium term for being a patient of Covid, would it cover that duration?
You generally have to be off work for 3 months first (dependent on your insurance policy), before they will commence paying you a percentage of your salary (fortnightly/monthly etc).
actually you can add "redundancy insurance" component into your "income protection" policy which covers involuntary redundancy. However, not all insurers offer that option, and I doubt default cover from super funds would include that option. I know mine doesn't.
All the insurance covers are different. You need to read the PDS.
My cousin is 58 and had to retire due to multiple medical issues (cancer, arthritis and a few more) and is having a shocking time trying to get Australian Super to pay up. She's crossed all the T's and dotted the I's, has specialist reports, statements from her employer saying she can't do her job anymore.
Sorry to hear that. It’s surprising that they aren’t paying despite no paperwork pending. Are they giving any specific reasons?
There quite clear on the requirements for a claim.
If your cousin is certain that she's got everything they require and meet the conditions, she can escalate the claim for internal review and then externally if the result is not satisfactory.
Thx
I'm leaving it in her hands. She's smart enough, educated enough to work it out. She has a partner to bounce ideas off.
Funds can't provide unemployment or redundancy Income Protection cover within super. It's against the SIS Act. You can only obtain unemployment or redundancy cover outside of super.
Short answer: No.
Long answer: Nooooooooooooooooooooooooooooooooooooooooo.
It's not unemployment cover. It's income cover if you can't work due to injury or illness. Losing your job due to an economic crisis is not either of those.