Dependent

2 min. readlast update: 11.01.2023

Definition

A Dependent, in the context of superannuation and superannuation claims, refers to an individual who is financially reliant on the member of a superannuation fund. In the event of the member's death, disability, or terminal illness, the dependent may be eligible to receive benefits from the superannuation fund.

Key Features

  1. Types of Dependents: Dependents typically include the spouse of the member, the member's children (including step-children and adopted children), and any other individual who is financially dependent on the member. In some cases, a person with whom the member has an interdependency relationship may also be considered a dependent.
  2. Eligibility for Benefits: Dependents are often eligible to receive benefits from the superannuation fund in the event of the member's death. They may also be eligible for benefits if the member becomes disabled or is diagnosed with a terminal illness.
  3. Dependent Nominations: Members can nominate their dependents to receive their superannuation benefits upon their death. This can be done through a binding or non-binding nomination, depending on the rules of the superannuation fund.

Importance

Identifying dependents is a crucial part of managing a superannuation fund and planning for future claims. It ensures that the right people receive the benefits in the event of the member's death, disability, or terminal illness.

Considerations

When nominating dependents, it's important for members to consider their circumstances and the needs of their dependents. It's also important to regularly review and update dependent nominations to reflect any changes in the member's situation, such as marriage, divorce, or the birth of a child.

Conclusion

A Dependent plays a vital role in the context of superannuation and superannuation claims. They are the individuals who may receive financial benefits from the superannuation fund in the event of the member's death, disability, or terminal illness. As such, the identification and nomination of dependents should be a key consideration for any member of a superannuation fund. 

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