Legislative changes confuse 500,000 insured Australians using self-managed superannuation fund. Still, huge growth in SMSF retirement savings continues. Hence, TAL’s David Glen said clients and advisers must work together to determine what would provide best for life insurance needs: SMSF, retail superannuation or outside superannuation. Thorough knowledge on SMSF use in investment and tax…
With the many advantages associated with SMSF, the same can’t be said in the event of death especially at a time most unexpected. In most cases, the death benefit comes from a portion that has to be sold to pay the surviving spouse. Recently, where death and property purchase inside SMSFs are concerned, values…
The government has announced recently about the possible changes to the superannuation system. Note, however, that these will have to go through the normal political process first before they finally become a law. Here’s a summary of the said reforms: Superannuation income streams The tax-free status of retirement phase earnings remains but the limit is…
Did you know that tailored personal insurance super structuring can give you a greater choice and affordability of your life Insurance and Income Protection? If you have known about this before yet have doubts about the possible benefits, then now is the time you consider it seriously. In the past, you only had the choice…
With the move of the legislative to preserve the best interest duties of financial advisers beginning July 1, 2013, it’s no longer enough for these advisers to recommend holding life insurance in super based on funding efficiency alone. However, according to Martin Breckon, the technical services manager at IOOF Holdings Ltd, some issues have to…
Self-Managed Superannuation Funds represent the fastest growing segment within Superannuation – the average SMSF now has $964,000 in assets. People are choosing SMSF for the following key reasons Having control over there Super Investments and their own retirement destiny Flexibility and investment choices Ability to purchase property and even borrow under some circumstances Able to…
We can all vividly remember how we felt following the impact of the GFC and severe downturn in investment markets. Many Superannuation funds that had performed well in 2006/07 dropped dramatically in 2008/09 – some aggressive funds dropped by 50% in value. However, markets move in cycles and now people who have money invested in…
Income protection is important but where is the policy best held – inside or outside superannuation? The answer depends on several factors such as the needs of each individual. Note that in an income protection… Cover structures inside or outside super are with tax deductibility benefits. Inside or outside super, taxes are applied on…
The last quarter of 2012 financial year saw a great number of life insurance complaints filed at the Superannuation Complaints Tribunal. Telephone complaints coming from fund members totaled 2809 while the number of written complaints reached 627. Summary of complaints with decisions by both fund trustees and insurers upheld by the SCT: In…
At the Association of Super Funds of Australia event, Deputy Chair Ross Jones acknowledged that APRA’s initial position that restricts benefits offered to coverage acquired through life insurance was stiff. When selecting an insurer, licensees were asked to check not only insurance level premiums but all insurance arrangements aspects prior to selecting an insurer. The…