Life and Income protection insurance
- Thread starter Success
- Start date
May want to consider having the income protection insurance outside the super in your name directly. I've been told it can be hard to access within the super account, especially as if you are in need of it - chances are you don't want to put up with a hassle and struggle to get it out of there.
Hi Success,
Income protection is also tax deductible against your income. Unless you are on less than 15 % personal tax rate, makes more tax sense outside of super, in addition to Steve's point above.
My wife and I however, have our life cover thru our SMSF, to at least get some tax advantage that way.
Check with your financial planner and accountant also to suit your own situation.
I actually got my income protection outside super.
I did this because from memory there could be issues paying myself from my SMSF if I got sick. There are better tax savings doing it this way as well.
The best income protection policy for me was with Tower and for life was with ING.
I found that even though a combined Income protection + Life was cheaper the products weren't as good so I chose different products and went with 2 different companies.
I also didn't take the TPD because I felt that the risk for me was very low.
If you are concerned of the costs, you could maintain a small $ balance in an industry super fund and leave that money in cash or some similar plan which hasn't got high fees and therefore qualify for insurance through them.
I hope this helps.
I did this because from memory there could be issues paying myself from my SMSF if I got sick. There are better tax savings doing it this way as well.
The best income protection policy for me was with Tower and for life was with ING.
I found that even though a combined Income protection + Life was cheaper the products weren't as good so I chose different products and went with 2 different companies.
I also didn't take the TPD because I felt that the risk for me was very low.
If you are concerned of the costs, you could maintain a small $ balance in an industry super fund and leave that money in cash or some similar plan which hasn't got high fees and therefore qualify for insurance through them.
I hope this helps.
Haven't heard of such insurances. As far as I know, there's income protection insurance in case you are not able to perform your job due to an accident or disability. But insurance coz you got laid off, nope.
I did both
No, from what I've seen it's always cheaper via an industry super fund because they get bulk rates
Advantages & disadvantages when we insure through superannuation and SMSF’s
The cost of insurance cover within superannuation can be tax deductible
It is possible to use the Superannuation Guarantee & Salary Sacrifice contributions to fund insurance cover
Successful claims are paid by the insurer to the Trustee of the superannuation fund but the Trustee can only release the claim benefits to you if they meet the conditions of release.
There is tax deduction for insurance premiums in relation to Death and TPD cover inside super but claim proceeds are taxed.
Outside super you don't get a tax deduction on the insurance premiums but the claim proceeds for death and TPD insurance are tax free.
for more details follow the following link :
http://yourfp.com.au/services/insurance/insurance-via-super/
The cost of insurance cover within superannuation can be tax deductible
It is possible to use the Superannuation Guarantee & Salary Sacrifice contributions to fund insurance cover
Successful claims are paid by the insurer to the Trustee of the superannuation fund but the Trustee can only release the claim benefits to you if they meet the conditions of release.
There is tax deduction for insurance premiums in relation to Death and TPD cover inside super but claim proceeds are taxed.
Outside super you don't get a tax deduction on the insurance premiums but the claim proceeds for death and TPD insurance are tax free.
for more details follow the following link :
http://yourfp.com.au/services/insurance/insurance-via-super/