Insurance

Insurance is a vital protection for your family and your assets. Insurance premiums can be paid by an SMSF on behalf of the Fund’s beneficiaries (members). As the recent changes being introduced by the ATO, it is compulsory for Trustees to give consideration whether they should hold a contract of insurance that provides insurance cover for one or more members of the Fund. It is the Trustee’s responsibility to select an insurance policy that best suits the Trustee’s needs.

There are 3 types of insurance policies as listed below the SMSF can purchase for its members:

  • Life insurance
  • Total and permanent disability (TPD) insurance
  •  Income protection insurance (the income protection insurance in the SMSF does not include redundancy cover)

To be able to claim the insurance in the SMSF, one of the following condition of release must be met:

  • Death of a member
  • A terminal medical condition
  • Permanent incapacity
  • Temporary incapacity

Tax Considerations

It is worth noting that although Life Insurance premiums are not deductible in a personal capacity as an income tax expense, they are deductible as a tax expense in an SMSF.

Below are some examples of Insurance Providers:

Please note that the Trustees are responsible for choosing an Insurance Provider that is best suited to the Trustee’s needs. Superannuation Warehouse does not give any recommendations as to which Insurance Provider the Trustees should utilise.

1.  AustBrokers Countrywide – specialise in SMSF insurance. More details on their insurance offerings here:

Insurance Products Insurance Review Release Form

Gary Decru is the contact at Austbrokers Countrywide . To give them authority to request your insurance information, sign the attached release form. Gary’s contact details are 03 98351352 or garyd@abcountrywide.com.au to discuss your insurance needs.

2. United Family Insurance – Specialist in personal insurance within an SMSF. They provide a personalised service, including customised insurance to meet your desired level of cover, at an affordable premium.
Please visit their website to discover more.

To receive honest, straightforward advice, you can contact Stephen Long on 0421767187 or email ask@unitedfamilyinsurance.com.au.

3. Australian Group Insurance – Your SMSF will pay the insurance premiums on your behalf.  Use the SMSF provider code AUS005 to apply for a new policy at www.agismsf.com.au

An online application will take you about five minutes and you will receive an immediate decision. The insurance plan provides Death and TPD cover up to $1.25 million and Income Protection up to $10,000 per month. You can also transfer existing insurance cover (up to certain limits) from your retail policies and super funds.

Online Insurance Qoute

4. Other insurance brokers – Trustees can use a bank or insurance broker of their choice to take out an insurance policy for their SMSF.

Commissions

Superannuation Warehouse may receive an upfront and trailing commission from the Insurance Providers noted above.

For more info relating to insurance, please watch the video below.

For more information on transferring benefits into your SMSF, please see here.

  • mark hobson

    I have looked on your site re life insurance. HEST and
    Australia Super do not offer insurance out of super. Can you advise a
    list of who does?

  • superannuationwarehouse

    Mark,

    To be able to have the insurance with a Retail Super Fund such as HEST or Australia Super, you need to be a Member of the relevant Fund. Some people keep a retail fund open in addition to their SMSF for insurance purposes.

    We offer an insurance option from AIG for our clients. This is a wholesale policy and the SMSF will pay for the premium. If you put in our adviser code (see website for details) , your SMSF will get access to this policy with AIG. AIG is one of the biggest insurers and this is a great option.

    In addition to this, you can also consider insurance offering by the banks – just remember to have the policy in the name of the SMSF.

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We are Melbourne based with clients throughout Australia. Our SMSF administration service is mostly paperless. This enable us to charge a fair fee, resulting in a good value-proposition for you.

No Advice

Superannuation Warehouse is an accounting firm and do not provide financial advice. All information provided has been prepared without taking into account any of the Trustees’ objectives, financial situation or needs. Because of that, Trustees are advised to consider their own circumstances before engaging our services.

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