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Salary Continuance thru Super

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Haggis, 4th Jun, 2009.

  1. Haggis

    Haggis New Member

    4th Jun, 2009
    Perth, WA
    Can anyone clarify something for me please?

    I am currently looking at SCI through my Super fund but have been advised against it on the basis that if I make a claim, the payments are made to Super and unless I meet a condition of release I won't have access to the money? Kinda makes me question why you would have this at all if this is the case.

    I've also been advised by another individual that different super providers have different rules and some will actually pay the claim to you but retain the super contribution component (if applicable).

    I'm only in my early 30's but have a family so if something happened and I claimed I'd want to know the money was coming to me not super!

    Does anyone know or has anyone experienced this?
  2. AsxBroker

    AsxBroker Well-Known Member

    8th Sep, 2007
    Sydney, NSW
    Hi Haggis,

    Not sure who told you this, you might want to check with your super fund.

    If you are temporarily disabled why would they pay your superannuation balance? Your superannuation is your retirement benefit...They would only do this if you met a condition of release.

    Saying that, it is also called Temporary Salary Continuance... (TSC)

    I would be very sceptical about any advice that you get from anyone apart from your super fund or a financial planner who deals with your super fund. If the person giving advice knows so much why aren't they a financial planner?

    It's amazing how many people get "advice" from anyone but a financial expert.



    PS Before making a superannuation decision speak to your FPA registered Financial Planner.
  3. Superman

    Superman Well-Known Member

    6th Nov, 2007
    Gold Coast, QLD
    Agree with ASXBroker 100%

    Also consider the fact your STI / Income Protection insurance premiums are 100% tax deductible, which lowers the pain somewhat if you are paying it out of your own pocket rather than from your super.