During my time as a manager at NRM Johnson I have been extremely fortunate to have met so many great people and I would like to thank you for your assistance during this time. I also look forward to the opportunity of meeting many more of you in the near future.
I thought I would take this opportunity to talk to you all about a couple of quite upsetting phone calls we have recently received from separate clients who have had very serious health problems.
The first call was from a client who has been diagnosed with cancer. The second relates to a client with a serious heart condition who (fortunately) had a very narrow escape but still ended up in hospital.
Superannuation - Binding Death Benefit Nomination Forms
The first caller has their own Self Managed Superannuation Fund (SMSF) but they do not have a binding death benefit nomination form in place for their superannuation benefits. This form dictates to the trustee of your estate who will be entitled to receive your superannuation benefits when you die. Those of you who have an SMSF would have completed one when you created your Fund. However, these do lapse every 3 years and therefore it is important to ensure you have a current binding death benefit nomination form in place.
Those who don’t have their own fund and are in a Retail or Industry fund should receive a new binding death benefit nomination form every 3 years from your Fund. Should the unthinkable happen and without a valid will in place, the benefits may not be paid to those desired beneficiaries of your estate. You couldn’t imagine the mess and heartache that this can cause.
Last Will and Testament
The second caller did not have a will in place. Again, if you do not have a will or if your circumstances have changed since you last drew up your will, this again could mean the desired beneficiaries of your estate could be overlooked and your assets may be left to someone else. Marriage, divorce and birth of children are obvious examples where a will should be reviewed and updated.
I think it is also prudent to mention how important the right personal insurances can be. Insurances are those necessary evils we hope we will never use, but it’s on that off chance you will be glad you had it. Types of insurances include:-
Income Protection – should you be temporarily unable to work due to serious illness or injury
Death and Total and Permanent Disablement (Death and TPD) insurance – should you pass away or be permanently disabled and not able to work again
Trauma insurance – to assist in covering the cost of medical expenses should you be diagnosed with a serious or terminal illness.
By law, everyone with superannuation in a retail or industry fund must have a minimum level of Income Protection and Death and TPD insurance. However, it would not hurt to review your policies to determine if you have the adequate levels of cover for your particular circumstances.
This is in no way intended to be legal or financial planning advice.
Unfortunately, many of us only think about the financial impact we have on the lives of our loved ones when something serious happens to us, especially if you are the main bread winner. In many cases, people are proactive and put their desired plans in place, for others it can be too late.
Hopefully you’re lucky enough to never have to worry about any of this stuff but in any case it’s worth thinking about.
We can help and guide you with any of these matters, so if you need any help, please do not hesitate to contact us.
“Business underlies everything in our national life, including our spiritual life. Witness the fact that in the Lord’s Prayer the first petition is for daily bread. No one can worship God or love his neighbour on an empty stomach.”