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 considered. Here are some of the pros and cons of having SMSF life insurance compared with having an insurance policy outside of super. Pros Life and TPD insurance are typically tax deductible if owned by a SMSF, but not if owned by an individual. Income protection insurance is generally tax deductible on policies outside of super. Note: The rules on TPD tax deductibility have changed as of July 1, 2011. [...]

Making a personal insurance claim usually means that something unfortunate – often traumatic – has happened. Going through the claims process after suffering a severe injury or being struck by a debilitating illness can be a distressing time, which is why it’s vital to have a reliable insurance advisor to help you through the often daunting process of filing a claim. CCA Fp advisors are continually kept up-to-date with new developments in the insurance industry and have an intimate knowledge of the insurance products they deal with and this can help ensure that the claims process goes as smoothly as possible for clients.   A reliable and effective advisor is one who has an in-depth understanding of all the formalities involved in making a claim. [...]

There are a number of personal insurance options that are available to financially protect you and your family should the unthinkable occur. Several of these come under the umbrella of life insurance, which provides financial compensation in the event of death or the diagnosis of a terminal medical condition. Term Life Insurance Life insurance is designed to pay a lump sum to your nominated beneficiary if you die. You will set the amount that you want to be covered for. When nominating an amount, it is important to consider any debts you may have, education expenses for your children and your family’s general living expenses. You want to know that your family will not be under financial pressure if something happens to you. Your age, [...]

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 super contributions. Not all types of insurance are suited to SMSFs. Trauma insurance, also known as critical illness cover, is available through a SMSF, but there are some major limitations. Trauma insurance covers situations in which you could become permanently incapacitated such as a serious accident or traumatic event like a heart attack. In order to access the claim through your SMSF policy, you will need to satisfy several conditions [...]

It’s common for seniors to be uncertain as to whether they need life insurance. Many seniors have achieved some major financial goals – they’ve paid off the house and sent their children through school. They only require day-to-day living expenses. But they may not realise the financial hardship they could put their spouse or other relatives through if they die. There are two main life insurance options for seniors – funeral insurance and term life insurance. Deciding which one to choose depends on a number of factors.  Funeral Insurance Funeral insurance provides a lump sum payment to your beneficiaries if you die. The main benefit of this is that your family can pay for your funeral expenses and not have to worry about any resulting [...]

It has traditionally been difficult to get affordable income protection insurance if you engage in activities that are considered high risk, for example trail bike riding –  but AIA Australia has provided trail bike riders with income insurance at standard rates since 2004. Several insurance providers offer income protection for trail bike riders, but it’s common for there to be a loading fee. The reason why income protection for trail bike riders can be hard to find or incurs additional fees is that it’s an inherently hazardous activity. An office worker with a perceived low risk becomes a high-risk client if he or she is a trail bike rider. The same is true for a number of high risk hobbies including surfing, mountain climbing and [...]

 Zurich Financial Services Australia has long been regarded as an income protection insurance provider of the highest order, as evidenced by its string of national awards. In 2011, Zurich received the Review Smartinvestor Blue Ribbon Award and the Canstar Cannex Outstanding Value award for its Term Life and Total and Permanent Disability (TPD) product. Zurich has become the income replacement insurance provider of choice for many during this time of global economic turmoil and uncertainty. For anyone wanting peace of mind in the event that they cannot work due to ill health, parental leave or any other type of forced unemployment, Zurich offers income replacement that takes into account their clients’ income history for the past 24 months, where many providers only look at the [...]

All income protection insurance policies have waiting periods. The waiting period is the time between being declared unable to work and receiving your first insurance payment. When you sign up for an income protection plan you decide how long you wish the waiting period to be (it usually ranges from two weeks to two years). Choosing an appropriate waiting period depends on a number of factors, including: Budget: The longer the waiting period, the less you pay on your premium. You need to assess how long you can afford to go without income. What does your savings account look like and can you afford to dip into it? Do you have a mortgage? Do you have credit card repayments? These factors will all need to [...]

July 1, 2011 saw a change in the rules surrounding tax deductions for total and permanent disablement (TPD) insurance policies owned by a super fund. The changes ushered in by the Australian Taxation Office mean TPD premiums that come under the definition of “own occupation” are only partially tax deductible. Premiums that relate to the TDP definition “any occupation” are still eligible for a full tax deduction. The main differences between any occupation and own occupation are: Any occupation: A circumstance whereby you suffer an injury or illness that prevents you from ever working in an occupation for which you are reasonably qualified. Situations in which “any occupation” benefits would be paid might include loss of eyesight, loss of limbs, reduced cognitive function and physical [...]

  MLC Masterkey Business Super has introduced some exciting new features to its insurance product. Integral to its new and improved product is the Best Doctors medical information service. This service was established in 1989 to help people with significant illnesses connect to a worldwide network of leading specialists, so that they can get access to the most appropriate and effective medical advice for their condition. MLC Masterkey Business Super members who have income protection insurance to age 65 and their immediate families can now have access to the Best Doctors service. This is an Australian first for superannuation and exclusive to MLC members. MLC pays in full for its members’ access to this potentially lifesaving service. MLC has also streamlined its services so customers [...]