How do I update my binding death benefit nomination?
If you think you haven’t made a Binding Death Benefit Nomination, or that you haven’t done one in the last three years, then you should definitely update your nomination. You don’t need me, this is something you can take care of yourself.
All you need to do is call your superannuation company, tell them “I want the form that says what happens when I die”. They will either mail a form to you or direct you to their website to fill out the form.
Fill out the form in accordance with their instructions, send it back. The instructions will probably be right there on the form.
If there aren’t instructions, then what you need to do is:
● choose two witnesses who are adults and who you are not giving any superannuation or life insurance to
● sign and date the form in the presence of those two witnesses at the same time
● remember to have the witnesses sign and date it as well
● make sure that the witnesses write their full name, and do not for instance write ‘Adam N. Smith’
That is what is required. Now take a copy of the form and mail the form back, and set a calendar reminder for two and a half years from now to do it all over again. Don’t set it for three years, because it is life admin so you will keep putting it off.
The superannuation company may have the forms online, so you may even be able to skip the part where you speak to someone on the telephone if you can find it on their website.
Don’t be fooled by a non-binding nomination
If you look at your statement and it says that it is going to the right person, or if you speak to someone at the superannuation company and they say it is going to the person you want it to go to, don’t stop there. Most superannuation companies have non binding nominations, and yes the problem is as plain as the name, it isn’t binding.
Even if it does end up going to the correct person, say your spouse, that will only happen after the superannuation company gets statements from all other potential beneficiaries and asks them the question, do you think you should get the money instead? Your family doesn’t need this. Sort out a binding nomination, and make sure that you update it every three years.
If you aren’t sure if you need a Binding Death Benefit Nomination, then you can read more about that here.
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