It is not mandatory for you to seek financial before choosing to convert a periodic PI payment into a lump sum amount.
However, the Department of Veteran’s Affairs (DVA) strongly recommend that you seek advice from suitably qualified people. This is important if you do not have experience in managing the amount of money being offered to you, particularly where there is also a large change in your lifestyle.
The considerations can vary with different personal circumstances. Some of the matters you should bear in mind are
- the taxation treatment of the benefits being offered
- the effect of the benefits being offered on eligibility for income support payments like Centrelink pensions or Service Pension
- where you have dependants, additional assistance or taxation benefits may be available through DVA or Centrelink.
Your own commitments, existing assets and lifestyle, including the impact the impairment may have on your lifestyle, are critical to planning for the future and you should begin to think these through before you consult an adviser.
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