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TPD claim

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Tallis, 20th Nov, 2013.

  1. Tallis

    Tallis Member

    Joined:
    8th Oct, 2013
    Posts:
    10
    Location:
    Melbourne
    When claiming a TPD payment from insurance built into an accumulation account does that trigger ......
    1. The accumulation fund to change into pension phase?
    2. The TPD payment flows into the cash component of the accumulation acct?
    3. The accumulation fund to change in any other way than it is today?
    Thanks
     
  2. Drue

    Drue SMSF Accountant

    Joined:
    11th Oct, 2013
    Posts:
    3
    Location:
    Sydney,NSW
    Remember that the owner of the policy is your super fund, not yourself personally. The insurer will pay the benefit to the super fund if they accept that the insured event has happened. The member then can ask the trustee to either start a pension or pay a lump sum if the trustee is satisfied that the relevant condition of release has been met. So, 1. Not necessarily. 2. Yes. 3. Not sure what you mean.