CASE STUDY: Why It’s Important to Understand Your Superannuation

In a recent review appointment with my client, they mentioned, in passing, that their adult daughter was concerned that her modest superannuation balance was quickly diminishing.

Additionally, they went on to say she was struggling financially, trying to find a job, raise 2 young kids, and trying to save money for a home deposit. Her husband was working extraordinarily long hours, further exacerbating the home situation.

They then went on to explain their daughter suffered a severe heart attack about 7 years ago, and never fully recovered, hence being unable to obtain suitable employment since then.

I offered to investigate her superannuation, and they provided me with the appropriate authority.

As suspected, her superannuation was being eroded by insurance premiums. BINGO! She had Death, Total and Permanent Disability insurance, AND Income Protection.

On further investigation when her heart attack occurred, she WAS working and insurance premiums were being deducted from her superannuation. Due to her condition, she could no longer work at that place of employment.

Even though this occurred 7 years ago – at that time she WAS insured, and premiums WERE being paid.

With a bit of assistance, she was able to lodge a claim, (even though it was a number of years ago) and this morning, her parents arrived at my office with this beautiful gift.

Her daughter received a lump sum, being accumulation of funds she was entitled to through her Income Protection policy. Additionally, some under payments in her salary and benefits were discovered, which provided a further lump sum.

Her husband is now able to work normal hours, and is able to be home to support his family on a more regular basis. They are now accumulating savings for a home deposit, and they have even planned a weekend away for their 10th wedding anniversary. Who said dreams don’t come true?!?

Financial Stability - Case Study Thank You

I can truthfully say it’s the most satisfying, happy news I’ve heard in a very long time 😍 and I’m grateful for the beautiful thank you that I received!

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Financial Stability is a Corporate Authorised Representative  (no. 341434) of Executive Wealth Management Financial Services Pty Ltd. ABN 38 078 629 973. AFSL 245451. This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making any decision based on this information, you should assess your own circumstances or consult a financial planner and seek tax advice from a registered tax agent. Information is current at the date of issue and may change. Part of the IOOF group. 

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