Life Insurance from SMSF?

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  blocky27 on 10/05/2023 - 08:58

  +6

  The fact you're asking this question makes me wonder why you believe you have the wherewithal to manage the SMSF itself

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  Crow K on 10/05/2023 - 09:19

  -1

  Place your bets - time difference between someone making a post saying "you'll need to speak to a financial adviser" and someone saying "financial advisers are all rip-off merchants who do nothing, waste of money etc"

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  sumyungguy on 10/05/2023 - 09:25

  What quotes have you received so far for $300K cover? What about TPD and income protection?

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  deme on 10/05/2023 - 10:25

  +2

  Go back to an industry super fund.

  The SM in SMSF stands for self managed, not OzBargain Managed.

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  MrMarket on 10/05/2023 - 11:01

  depend what your liability are, can your family continue on with their life stye if something bad happened to you? that is the crud of life insurance

  I don't have any insurance for my SMSF, if something happened to me plenty of money in SMSF to covered for all my debt with some left over

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  deme on 10/05/2023 - 11:42

  https://hostplus.com.au/members/our-products-and-services/in…

  Plan	Benefit Amount	Weekly Cost
  Death Benefit	$13,041,000.00	$86.63
  TPD Benefit	$1,255,000.00	$7.97
  Income Monthly Benefit	$22,500.00	$21.57
  Total Weekly Cost	-	$116.17

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  bobbified on 10/05/2023 - 12:09

  In an SMSF, you may end up paying much higher insurance premiums due to it being an individual policy rather than a group policy. You must "consider" insurance cover in the SMSF, but you don't need to have it.

  Depending on your own circumstances, you could be better off keeping an amount of cover in a corporate super fund account and feed money into it regularly to maintain that cover.

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  jerome on 10/05/2023 - 13:34

  Thanks guys for your inputs, I think I got an idea of what to do now.
  I'm also seeking advice from my accountant.

  Cheers

  • 

    deme on 10/05/2023 - 18:37

    I think I got an idea of what to do now.

    I don't think you do

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  Terbo on 10/05/2023 - 13:34

  +1

  Do you need Life insurance? spouse, kids, elderly parents, debt, income replacement.
  Do you need it paid via Super? tax free beneficiary, asset protection, bypass estate, tax deductible.
  Do you need it paid personally? taxable beneficiary, non family beneficiary.

  Answer these questions then look at a few Industry Super fund insurance calculators for quotes eg Aust Super, ART (you will need a 2nd super account to own the policy), and also look at retail insurance providers/comparators eg AIA, TAL, Zurich (not a reseller), who all provide the Industry Super insurance as well as their own products, sometimes dearer but these days often cheaper, especially for higher amounts (your SMSF can own the policy).

  Both will ask health questions, retail insurance will be more detailed but then guaranteed, Super fund cover is more basic, unless you have issues and then they are harsh, policy isnt locked in as its a group contract subject to change.