While this is a very complicated task (and perhaps the stuff of urban legend) it's worth setting the story straight; so you know where you stand with your super.
While your super fund can help you with an early claim for super made under financial hardship, claims made under compassionate grounds must go direct to the ATO.
Simply put, you can nominate in writing who you want to receive any future payout with a Beneficiary Nomination or Binding Death Nomination (depending upon what you choose).
Lots of things need to be moved around to make room for a new life - from furniture, family sleeping patterns and even moving some of your insurances currently held in your super.
The good news is if you want to help you can put money into their super, and you might be eligible for a personal tax offset, while helping to create a better future.
After all putting extra money into your mortgage means you can pay off your debt quicker and save interest, but putting extra money into super builds your retirement nest egg.
Sounds like an impossible choice?
With superannuation now becoming a compulsory part of life, many people soon find they have significant amounts in their super growing at 9.5% per year - the minimum compulsory amount all employers are required to withhold from your income and deposit into your super account, for your retirement.
In reality, if you passed away today, the value of your super account could be significantly higher because of a ‘hidden’ life insurance component.
Nothing starts a heated conversation between mates at a BBQ quicker than a question about superannuation and whether you should be allowed to get access to it before you retire.
The government's stated purpose behind our national compulsory super savings plan is to provide people income in retirement to substitute (or supplement) the Age Pension. This is known as the sole purpose test.
This is especially important if your life insurance is owned by your super fund because there are additional rules you need to understand. If you don't, then you'll leave a whole lot of unnecessary pain and problems for your survivors.