Death benefits and what happens when you die
If you have death cover, the payout to your beneficiaries will be comprised of both the death cover and the account balance. If your account does not have death cover, then only the account balance will be paid, but how do you make sure it gets into the right hands?
If you’re under 70 years of age, death cover is provided as a default when your account is created by a participating employer. Typically, this cover is unit-based and starts to decrease from the age of 39 until it cuts out completely at your 70th birthday. The premiums are paid out of the account balance and the only things you have to worry about is making sure you’re adequately covered and that your beneficiaries are set up correctly.
Who gets your superannuation
The process of claiming the death cover and account balance from superannuation can take a few weeks, sometimes longer depending on the complexity, so the money won’t typically be ready by the time the funeral costs come around. Much of the complexity arises from the type of beneficiary you hold on your account, so make sure your nomination is up to date and valid.
If you make a valid binding death benefit nomination, Vision Super has to distribute your benefit to your dependants according to your wishes. You can only nominate very specific people including your spouse, child, or someone with whom you have an interdependent relationship. If you want to nominate someone else, you have the option of nominating your legal personal representative as your beneficiary and leave instructions for your money in your will.
Using Vision Online is the quickest way to nominate your preferred beneficiaries. Nominating your beneficiaries assists us to understand how you would like any death benefit entitlement distributed to your dependants if you die. A preferred beneficiary nomination indicates your preference and is not binding on Vision Super, which means the fund ultimately decides on how to distribute your benefit.
In the event that you don’t have a nomination, Vision Super will decide who receives your death benefit in accordance with our trust deed and superannuation legislation, by paying to either any ‘dependants’ or your estate for distribution according to your will (or both).
A small decision you make today could make a world of difference to you and your family in the future.
If you’d like to read further, you can find out more >> https://www.visionsuper.com.au/about-us/latest-news/lifestyle-news/963-death-benefits-and-what-happens-when-you-die