Financial guidance for chronic illness
This event focussed on managing finances when living with a chronic illness. It was led by Calum Liang from Viridian Advisory.
This event was recorded on Thursday 5 September 2024. It is available to watch, listen or read about.
Listen to the audio
Read a summary of the event here
This summary has been automatically generated.
Mito Foundation’s Acknowledgement
Mito Foundation acknowledges and respects the lived experiences of individuals with Mito and their support systems, recognising the unique nature of each journey and valuing their contributions to the fight against the disease.
Viridian Financial Group
Viridian Financial Group, established in 2015, is an Australian financial services company that offers a range of financial advice services, including wealth and retirement planning, superannuation, self-managed super funds, cash flow management, insurance, Centrelink assistance, aged care planning, and estate planning.
Website: https://viridianfinancialgroup.com.au/
Importance of Early Financial Planning
Callum Liang, a financial planning professional with over 25 years of experience, emphasizes the importance of early financial planning to alleviate financial stress, especially for individuals with chronic illnesses, as it provides a clear understanding of financial options and reduces uncertainty.
Insurance Options
Income protection insurance, often included in superannuation plans, replaces income lost due to illness or injury after a waiting period, typically 30 days.
Trauma insurance provides a lump sum payment for specific illnesses or injuries, with some policies offering reinstatement for future claims.
Early Access to Superannuation Funds
Early access to superannuation funds for medical expenses is possible under strict guidelines, such as compassionate grounds for financial hardship, and may be subject to limitations.
The Australian Taxation Office (ATO) allows early release of superannuation for significant or life-threatening medical costs.
Superannuation Policy Review
It is important to review all superannuation policies before consolidating them, as there may be benefits and insurance coverage that could be lost.
Insurance Policies within Superannuation
Insurance policies within superannuation may be automatically accepted without a medical assessment, especially those provided through large employers.
Existing insurance policies cannot be cancelled by the insurer even if a new condition develops.
Insurance Payment Options
Trauma insurance must be paid for personally, while income protection can be paid for through a combination of superannuation and personal funds.
Insurance Premium Determination
Insurance premiums are determined on an individual basis, taking into account factors such as age, gender, health history, and level of cover.
Superannuation Beneficiary Nomination
A beneficiary can be nominated for superannuation funds, which guarantees them the superannuation balance in the event of death or total and permanent disability (TPD).
Bank Support for Chronic Illness
Banks may offer options like mortgage insurance or grace periods for postponing interest payments to help manage financial burdens related to chronic illness.
Additional Superannuation Contributions
Individuals may be able to make additional contributions to a superannuation fund to maintain insurance coverage, even if the account holder is not of working age.
Benefits of Proactive Financial Planning
- Proactive financial planning can reduce stress by organizing finances and ensuring financial security.
- Consolidating multiple superannuation funds into one can lead to cost savings by reducing fees.
- Financial advisors can provide education and guidance to help individuals make informed financial decisions, and initial consultations are often free.
Contact Information
- Calum can be contacted for more information or questions.
- The Mito Foundation website has resources about government support, payments, and concessions.
- Calum can connect people with advisors around the country.
Disclaimer: Resources provided by the Australian Mitochondrial Disease Foundation Limited (Mito Foundation), offers general information and is not a substitute for medical advice. It is essential to assess the suitability of the content for your individual circumstances and make decisions based on your medical condition. The information’s accuracy is subject to change, and we do not guarantee ongoing currency or availability. While efforts are made to ensure accuracy, Mito Foundation is not obligated to provide updated information. The copyright for this document and its content belongs to, or is licensed to, Mito Foundation, and reproduction without prior written consent is prohibited.
Disclaimer: Resources provided by the Australian Mitochondrial Disease Foundation Limited (Mito Foundation), offers general information and is not a substitute for medical advice. It is essential to assess the suitability of the content for your individual circumstances and make decisions based on your medical condition. The information's accuracy is subject to change, and we do not guarantee ongoing currency or availability. While efforts are made to ensure accuracy, Mito Foundation is not obligated to provide updated information. The copyright for this document and its content belongs to, or is licensed to, Mito Foundation, and reproduction without prior written consent is prohibited.
