What Happens to Your Super When You Pass Away?
Who decides what happens to your superannuation savings when you die? You may think that you do, but that isn’t…
Receiving a total permanent disability (TPD) insurance payout marks a major milestone – one that likely came after significant perseverance and paperwork on your part. While this moment may bring mixed emotions, this compensation now plays a crucial role in your long-term financial security. Making informed decisions about how to manage and invest these funds is vital for maximising the benefits to you and your dependents.
ActOn Wealth’s financial advisors in Melbourne are highly skilled and experienced in developing sustainable and strategic life insurance investment plans that safeguard your financial future and grow your wealth.
We understand the unique considerations involved in managing and maximising your insurance payout. Contact us for a no-cost, no-obligation meeting.
We’re Experts at Working Around Obstacles
We understand you’re in a unique financial situation, and this money has to stretch as far as possible. However, a sudden payout can bring complications. We can help you navigate any of the following:
Centrelink Implications
A lump sum payment can affect your eligibility for a disability support pension or other ongoing benefits. Indeed, you risk losing all financial support if your payout is not structured correctly. Our experts can advise on the best set-up for your situation.
Taxation Considerations
If TPD is held in super, tax will be payable when it is removed from your fund. You must therefore understand any capital gains tax (CGT) implications on your investment choices. We can assist!
Challenges in Long-term Planning
It can be difficult to put a price tag on your long-term medical needs and factor in rising healthcare costs.
Emotional Decision Making
You’ve been through an enormous amount. You’re no doubt still coming to terms with your new health situation. Add to that financial decisions, and you may well be feeling overwhelmed.
No financial problem is set in concrete. ActOn Wealth is here to help you overcome any obstacle and grow your wealth. Learn how.
Your Settlement Needs a Strategy
ActOn Wealth’s experienced Melbourne financial planners offer all the financial services you require to determine how to invest your TPD or life insurance payout.
You require a unique, tailored strategic financial plan that considers your medical costs, living expenses and future care needs. Your cashflow and budget will need to accommodate immediate and long-term needs. You also need to consider your life goals and lifestyle transition plans, both of which will influence your financial plans. This is the kind of foundational work in which we excel.
It is unwise to simply keep your payout in a bank savings account; you’re highly likely to run out of funds. Instead, you will need to explore investment opportunities. Our professional wealth creation advisors can recommend an investment portfolio that balances your risk tolerance with your income needs. We provide regular monitoring and reviews and outline robust capital preservation strategies.
There’s a lot to consider here. Your Centrelink eligibility may now be under scrutiny. Any income revenue you derive from investments will be taxable. Your financial plan must include tax-efficient investment restructuring, CGT management and tax-reducing strategies. Our expert tax accountants will factor all this and more into a tailored plan.
This payout will likely affect other insurance policies you maintain. It is important to revisit all policies to ensure you are still adequately covered and that you have the best policy for your changing circumstances. We can help with the right insurance advice for your situation.
Many TPD policies are held within superannuation funds. It is important to now restructure your super fund to factor in these new circumstances. For instance, how much should remain in the fund and how much should be withdrawn now? The answer can influence many other areas of your financial situation. We strongly recommend you seek tailored expert superannuation advice.
Your Settlement Needs a Strategy
ActOn Wealth’s experienced Melbourne financial planners offer all the financial services you require to determine how to invest your TPD or life insurance payout.
Protection and Security
Our focus is on preserving and growing your capital while establishing an ongoing, sustainable income source. We also want to protect your eligibility for government benefits.
Comprehensive Approach
We have the skills and experience to manage, monitor and review your complete financial and taxation picture, not just one slice of the pie. When necessary, we can recommend lawyers and other professional specialists.
Practical Support
We have a dedicated team responsible for checking in and providing support every step of the way. We’re known for our easy-to-understand approach to finances and our passion for empowering clients with as much knowledge as they want. We’re also here to help lessen your paperwork burden.
Empathetic Advisors
We understand you’re going through a significant life transition. This calls for a financial support team with empathy and awareness, principles ActOn Wealth follows daily. But it’s also essential to make financial decisions that are not emotionally led, so we’re here to bring that level-headedness you will want on your team.
Our financial advisors are here to focus 100% on your wealth and well-being.
The Smart Choice for a Sudden Change in Finances
If you’re after sound financial advice from a firm you can trust and rely on, meet with ActOn Wealth. Let’s arrange a no-cost, no-obligation meeting so you can determine if we’re the right firm for you.
It’s time to make your finances thrive. Find out how with our team.
A total and permanent disability payout is an insurance lump sum paid to someone who can no longer work due to an injury or medical illness.
The answer depends on your specific situation and financial goals. Establishing an investment portfolio, an annuity (lifetime or fixed-term pension), reducing debt, and even setting up a trust could be part of your investment plan. Speak to ActOn Wealth about the best solution for you.
If you withdraw a TPD payout from super, tax may be payable. Seek the right financial advice from ActOn Wealth.
The answer depends on the wording of your insurance policy and its definition of total and permanent disability. However, if your disability is not severe enough to prevent you from re-entering the workforce, you should be able to do so. ActOn Wealth can help you interpret your policy and determine the best outcome for you.
Yes, TPD payouts may affect Centrelink benefits. As such, strategy and structure must be key to your financial planning. ActOn Wealth can advise on how to make the most of your payout and manage any ongoing Centrelink benefits.
Head Office (Melbourne):
14/20 Commercial Road, Melbourne VIC 3004
Geelong Office:
Shop 7 Belmont Walk, Belmont, VIC Australia, 3216
13000 ACTON ( 1300 022 866 )
contactus@actonwealth.com.au
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