Under Superannuation law, a ‘dependent’ in a Death Benefit claim includes:

• The deceased’s spouse or de factor partner;
• A child of the deceased (any age); or
• A person who has an interdependency relationship with the deceased.

To prove an interdependency relationship, it must be established that a close personal relationship exists between two people who live together, where one or both provides for the financial, domestic and personal support of the other.

When determining who is a dependent and the level of dependency on the deceased, the Trustee of the Superannuation fund will take into consideration all evidence that reflects the closeness of the relationship between the beneficiary and the deceased. This may include whether the deceased and the beneficiary were living together at the time of death, and if there were shared finances or expenses such as bills, mortgages and costs of living.

Most Superannuation funds will allow you to make a binding nomination. This means that you can specifically name a beneficiary – or beneficiaries – to receive your Superannuation death benefit if you pass away. It is important to note however, that binding nominations will lapse after three years and will need to be renewed.

If you make a binding death benefit nomination that satisfies all legal requirements, the Trustee of the Superannuation fund will pay your super to the beneficiaries you have explicitly nominated, and in the proportions you have specified.

If you believe that you should have been entitled to the Superannuation Death Benefit of someone who has recently died, you must act swiftly. Whilst challenges to a distribution can certainly be made, it must be brought to the Trustee’s attention within 28 days of the decision being made.

If you have been diagnosed with a terminal illness and two doctors have certified that you have a reduced life expectancy of two years or less, you may be able to claim on your Death insurance earlier.

When an Insurer intends to reject your Death Benefit claim, they will send you a Procedural Fairness letter. The purpose of the letter is to:

• Provide you with copies of all of the evidence relied upon in the assessment of your claim;
• Having regard to the available evidence, clearly set out the potential barriers to your claim; and
• Provide you with the opportunity to comment or provide further evidence to support your claim.

If you have received a Procedural Fairness letter, you should obtain legal advice as soon as possible.

Please refer to our blog post for further information.