Life and Income protection insurance

Hi all, I have my own Self Managed Super Fund (SMSF) setup now and wanting to take out both life and income protection insurance.

Anyone else here have this protection via their own (SMSF) ? If so with who ? I am seeing that not all insurance companies offer this.

Cheers ...
 
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.
 
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.
 
finally activated my policy a few days ago. it's pricey but you cant afford not to have it. i went for income, TPD, life. the medical grilling was the hardest - i honeslty couldnt recall the answer to a lot of the questions they had
 
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 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.

BV, did you use a broker or you did your own research for it?
 
So am looking at Income and Life insurance.

In the current business climate I am wandering if any companies offer redundancy insurance or in the case of losing a job ?
 
So am looking at Income and Life insurance.

In the current business climate I am wandering if any companies offer redundancy insurance or in the case of losing a job ?

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.
 
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/
 
we have our life insurance in our super, don't have Income protection anymore but it wasn't in super when we did have it.
 
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