Income Protection - Where on earth to turn

[LostFuzzy]

Dear Forum, 

Desperately hoping that someone here might have an idea of where to point me to ...

 I've kinda suffered with anxiety and mild depression for a number of years, but I recently started a new job 6 months ago, and 3 months into is I had a stroke and was hospitalized + off work for a total of 6 weeks and a bit. 

I went back to work too early I think and this has ended up with me having a total mental meltdown and admitted to clinic.  My GP seems to agree but it looks like it could be a real grey area. 

I'm expecting to be in the clinic for quite a while and off work for a minimum of 3 months according to my psychiatrist.

 Money is real tight as I didnt get paid for the first 6 weeks I was off due to almost no personal leave accrued. 

I have so many questions, but the entire thought of having to battle "the system" is just sending me into a complete flat spin even with the nice meds that they have got me on - I just dont know where to turn. 

i) I have 3 super funds, all have some kind of income protection as far as I can gather

ii) Would the current mental episode me a seperate event to the stroke? IE would I have to make 2 claims and a second 6 week waiting period now for the mental health?

iii) How would the kinda referee process work, because I know that they will all be trying to make each other pay, so have no ideas even which one i shoulkd contact first? maybe the fund I have had the longest?

iv) Any ideas how I can get help to "cope" with all of this process? I'm in a expensive private clinic and no one here seems to have a clue. Even the psychiatrist said "maybe you should just call your super fund and see what they say" -- OK, so I'm not going to get any help on that from the clinic. You would have thought that kind of support would be really high on the agenda. Amazing really

v) If you are off work for 6 weeks, anyone know if they backdate it to the first day you stopped getting paid?

Its driving me even more nuts that I already am with sick worry. 

If anyone can help me out you would be doing me and my family a huge huge service. 

Thanks 🙂

Fuzzy

[geoff]

dear Fuzzy, I'm sorry that you come to a point where you desperately need financial assistance, resulting from having a stroke and then mental breakdown.

To answer your question, I was able to get money out of my super a long time ago, and it wasn't any great deal of money, as my doctor and psychologist, who was the same person, wrote a letter stating that I was mentally unfit to do any work, and this was when I had a breakdown, but I needed the money.

I was still married at that stage, but I was sent a cheque,  this was about 20 odd years ago (?).

I know that you can get life insurance and income protection through your super, but I don't know whether this is done automatically or whether you have to apply for them.

I can't be taken for granted and hope someone else knows more than what I said, perhaps BlueVoices might know, or ring the BB phone number.

I only wish I could be more specific. Geoff.

[geoff]

dear Fuzzy, you can apply on compassionate grounds if you need money for:

- medical expenses for yourself or your dependents

-partial payment of house loans, to avoid forclosure

-modification of a home or vehicle if you have severe disability

-cost of palliative care

-medical transport needed for yourself, so you have to ring Department of Human Services on 1300131060 to find out if you are eligible for early release, or online  'www.humanservices.gov.au'.

You will need to know how much is in your super, and if DHS approve of an early release then your Super Fund will send you out another form, then fill it in, with the DHS form and proof of who you are, but you have to  go to the nearest Police Station and show them your DHS form, drivers licence which need to be photocopied and then authorised by an officer, stating their rank, station, name of where station is plus the address.

Hope this helps. Geoff.

-

[LostFuzzy]

Thanks for your input Geoff. I never thought about early release of super. 

That might really help.

Bit I do know I have income protection which supposed go give mt like 75% of my salary. EVen if I can get that for a few months would help immensly - getting evicted over Xmas would not be fun haha

[geoff]

dear Fuzzy, if I was a bit unclear from my reply then please let me know, but if you have a lot of money in your super, then you may not be able to get it all out but a portion.

I know that we haven't discussed your condition and how you are feeling, so it's always a concern on how you are.

I am also trying to help someone else who is in a similar situation, although he hasn't had a stroke, but has depression looming, as he wants 10% of his super to be released, but please let us know how you are actually feeling. Geoff.

[LostFuzzy]

I don't have too mu ch in there, but its just the mire of the whole income protection claims process. I was hoping someone here might have an idea of how to go about claiming from that as per the first post . I hate dealing with officialdom and bureaucrats and just cant cope with dealing with red-tape on the phone and that kind of person 🙂

Regarding the actual super itself, It looks like that is something they make extremely difficult for you.  I dont think that's gunna help me in the short term. 

I'm actually quite amazed though that the psych clinic has no idea how to help you with that stuff. surely I cant be the first person to be admitted and has is unable to cope in dealing with the finances. 

[Anna-s]

If you speak to a financial adviser they should be able to assist in lodging the claim forms. If they charge a fee,  they might be able to deduct this from your super,  as it's  super related advice. Normally a default income protection policy would not exclude mental illness conditions but it depends on the super fund. You can claim on multiple income policies at once,  but they will offset each other,  and usually the max you will get is 75% in total. Your waiting period may commenve the 2nd time you were off work. Hope this helps ☺

[Rahsi]

Hi Fuzzy,

This is my first post - I was on here looking for hints about how others cope, and look after themselves. I have only had two weeks off work for surgery on my arm, and have to head back on Monday. This brings me neatly (or so I think) to what I do for a living...

I have been working in superannuation for over a decade. My work brain needs to stress that I am not a licensed advisor, and I do not know all of your personal circumstances - so please bear that in mind with what follows:

1. Most income protection policies that form part of your super will start to kick in after about 3 months. They are designed to cover you after all leave entitlements etc have been used up. 

2. They can have "offset" clauses - if you have income from other sources/policies etc - then they can offset the payments that they make to you. For example - you may find that you cannot claim against all three super accounts at once.

3. Depending on the policy and your age - they can be treated the same as your wages for tax purposes

4. Early release of super can also be tricky. Once again -with out knowing your circumstances, you can pay tax on the amount that is paid to you. If you are under "preservation age" it can be up to 22% of the assessable component of your payment.

Speak to your super fund, ask what the insurance policy is, and get the claim forms sent. Ask what your tax components are (tax free/taxable-taxed and Taxable-untaxed - as these will drive what is deducted from any lump sum).

Finally - speak to Centrelink. There is a type of payment called a sickness benefit (at least there was a few years ago). It is sort of a bit like the income protection in your super. It is designed to help you out while you are off work. Your doctors and your employer would have to complete some paperwork.

And to answer your question - depending on the insurance policy in your super - the two conditions may be treated as seperate claims. It would depend on what the insurer and Trustee of the fund admitted under the conditions defined in their policy.

Hope this helps, and hope you recover.