ASFA debunks super insurance ‘misconceptions’
Australians are mistakenly convinced that making an insurance claim through a super fund is “too complex” to do without a lawyer, says the Association of Superannuation Funds of Australia (ASFA).
According to ASFA chief executive Pauline Vamos, there are “many misconceptions” surrounding the process for making insurance claims within super funds.
"We know that many super fund members are confused about how to make an insurance claim within super and some people believe that making an insurance claim is too complex to tackle without the help of a lawyer, for example,” Ms Vamos said.
"However, the majority of the time claims are paid in a timely manner and they rarely require legal input. Often, involving lawyers can drive up the costs and complexity of the process unnecessarily,” she said.
In order to debunk these “misconceptions”, ASFA has released a booklet, entitled Super Guru, which is aimed at guiding people through the process of making an insurance claim.
Ms Vamos added that “most genuine” claims are straightforward and can be made directly through a member's super fund.
"Super fund trustees legally have to act in fund members' best interests, including in relation to the payment of insurance claims,” she said.
"Between 85 to 90 per cent of insurance claims, on average, have been paid out."
The booklet consists of an eight-step guide to the insurance claim process, and information on what a person can do if their claim is not approved but they disagree with the decision.
Court confirms wealth directors breached duties
The Federal Court has dismissed the appeal from two directors of a collapsed fin...
ATO should administer early super scheme
An actuarial body has suggested the Tax Office should be responsible for adminis...
Practice Profile: Where digital meets personal
While the uptake of robo-advice has been slow in Australia, one advice firm has ...