How to claim death benefits

We know that experiencing the death of a loved one is a difficult time for you. It may be challenging to deal with the important paperwork involved, so we’re here to help you.

What is a Death benefit claim?

Death cover is available for eligible Rest members which provides a lump sum, or if chosen, a pension to the member’s beneficiaries in the event of their death.

A death benefit is the money payable on the death of a Rest member and consists of:

• the deceased’s account balance net of any applicable fees and taxes and;
• any insured benefits that may be payable.

While the claim is under review, it is important to note that the late member’s account is still considered active and the account balance will remain invested in the investment options which applied prior to the member passing.

The investment of the funds may result in a fluctuation of the account balance according to market performance and therefore may be higher or lower.

If you have any queries in relation to this and are an executor or believe you are a beneficiary, you may contact us to discuss or alternatively, seek your own professional advice.

Who can a death benefit be paid to?

If you believe a loved one, who passed away, may have insurance in their Rest account and named you and/or others as a beneficiary, you may be eligible to receive a nominated amount as a lump sum payment, or if chosen, a pension.

By law, the Trustee can only pay a death benefit to any one or more dependants of the deceased member and the Legal Personal Representative (LPR) of the deceased member’s estate.

The Trustee can only pay the death benefit to another person if there are no dependants or LPR.

When deciding who to pay, the Trustee will review the deceased member’s circumstances, any documented wishes, and who relied on the deceased member for support at the date of death.

Where a valid binding beneficiary nomination has been made, the Trustee will pay the benefit in accordance with the binding beneficiary nomination. The binding beneficiary nomination will be valid if it has not lapsed and the nominated person(s) can provide evidence to confirm that they were a bona fide dependant at the time of the death of the deceased member or they are the LPR of the estate.

What do I need to do to make a Death claim?

If a Rest member has passed away and you would like to notify us of this and potentially make a claim, please follow the steps below to start the process:

Step 1: 
You’ll need to have some basic information on hand before calling us. This will help us check if we can start a claim. Have ready:

• the Fund member number
• the member’s date of death
• details of the member’s dependants or Legal Personal Representative

Step 2:
Call us on 1300 300 778 to start the conversation.

Step 3:
Complete and submit your claim.

When a someone dies, their superannuation fund must pay the deceased’s death benefit, including an insured lump sum, to the appropriate person. You could have a claim for payment if you are:

• A beneficiary nominated by the super fund member
• Were dependent on the deceased, such as a child
• Were dependent of the deceased, such as a spouse
• Were otherwise in a close personal relationship

Terminal illness claim

It is also possible for the person who holds the superannuation account to claim the benefit themselves, if they have been diagnosed as terminally ill with a prognosis of 24 months or less. 

Most superannuation funds will have death benefit insurance attached the accounts by default. This insurance is available to relieve financial hardship in already troublesome times.

Time limits for making a death benefit claim

When dealing with these matters, it's best to claim as soon as possible. Some super funds have binding nominations, which means the account holder can nominate someone directly.

If there is no nominee, or a non-binding nomination, the person managing the super fund (known as the trustee) may decide who the dependents are, divide up the super or give it to the deceased estate. 

For terminal illness, the claim timeframes are similar to TPD claims.

Seeking expert legal advice from death benefit lawyers as soon as possible following your injury or illness is the best way to ensure your claim is successful.

Our team at Maurice Blackburn includes both experienced superannuation death benefit lawyers and wills and estates lawyers, to help you understand all of the options available to you and your loved ones. Contact our expert lawyers today.

Compensation and benefits

The payout for death benefits usually includes the money from the superannuation fund, and the payout from the insurance policy attached to the super fund, so can vary significantly depending on how long the person has been contributing to the fund.

If you're a dependent of the person who has died, you may be able to choose the death benefit to be paid as either a lump sum or an income stream. If you are not a dependent, it will be paid as a lump sum.