AIA Australia said a poll result showed slow adoption of life insurance within self-managed super fund. The survey of over 400 financial advisers that included accountants, brokers and advisers said SMSF trustees’ “knowledge gap on life insurance” was the reason. About 45% of respondents said less number of clients had life insurance within SMSF and…
As the sole earner or as a contributing earner in a family, life insurance is important. Family members may suffer financially in the event the earner meets an untimely death. The financial burdens to take care of can be tough. Ensuring that there is financial security in place will help keep the family from economic…
Changes are about to happen to many fund members whose cost benefits have been overlooked by SMSFs. Over 20,000 clients under the self-managed superannuation fund (SMSF) who have been under-insured will be offered automatic life coverage of up to $750,000. According to AIA Australia, this is the aim of insurance groups and financial advisers to…
Elevate insurance enhancements offer flexible and accessible insurance solutions. Flexibility and accessibility are two important factors that make life insurance solutions work and this is what is made available to our clients through enhanced insurance solutions. Mining Industry – Income protection – Extended benefit period for certain mining jobs – Increased maximum monthly benefit amount…
The following are the changes in the Federal Budget as announced last week. We see these changes in the concessional super contributions caps and contribution taxes likely to affect some of our clients. Higher contributions tax for very high income earners The tax concession on contributions of earners of over $300,000 will go down from…
A draft version of the latest guidelines for MySuper legislation was released this week. The guidelines detail recommendations for a number of aspects of insurance and intra-fund advice, including clarification of commissions and payments for advisors, particularly in the field of group insurance. In the area of insurance, according to the new guidelines, MySuper trustees…
The number of Australians with life insurance coverage through superannuation has increased while there was a drop for the same number of people with stand-alone coverage, potentially worsening the insurance gap. In 2006, the Financial Services Council said a similar study showed an increase in the number of Australians with superannuation life insurance coverage from…
An amendment to the Exposure Draft Superannuation Legislation was released by the government in December 2011. Known as the Exposure Draft Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012, this amendment added a number of covenants to the existing legislation document and increased the scope of obligations for trustees and licensees of superannuation…
Self-managed super funds (SMSFs) give people more control over their superannuation, and they can also hold personal insurance policies such as life insurance, total and permanent disability (TPD) insurance, and income protection insurance. There may be several advantages of purchasing life insurance through your SMSF, but there are also some drawbacks you may not have…
Purchasing your insurance through a self-managed super fund (SMSF) may have a number of advantages over having it in your personal name. These include tax deductions on life insurance and total and permanent disability (TPD) insurance as well as improved cash flow due to the fact that your insurance premiums are being paid by your…