No matter how comprehensive and successful your Investment Plan may be, the most important asset you and your Family have is your health. Without it, you lose your ability to provide for yourself and your family on a day to day basis, let alone meet your long term goals. By taking out Life Insurance and/or Total and Permanent Disability Insurance, you can afford to concentrate on living, knowing that if the worst happens, you and your family will be protected.
Different Types of Insurance using your SMSF
Life Insurance
Life Insurance provides a lump sum payment to your family on your death or diagnosis of a terminal illness. Life Insurance is available as a policy on its own, or in a policy that includes Linked Total and Permanent Disability Insurance.
Total & Permanent Disability (TPD) Insurance
Total and Permanent Disability Insurance provides a lump sum if the insured person suffers Total & Permanent Disablement. Typically this means that you have been continuously incapacitated for a period of time and the incapacity is such that it is unlikely you will ever resume your usual occupation again. Total and Permanent Disability Insurance can be Linked with your Life Insurance Policy or can be a Standalone Policy.
What Does Insurance Cost
Life Insurance and Total & Permanent Disability Insurance can be relatively cheap forms of insurance. The annual premiums payable depend on the amount of cover required, your age, health and lifestyle. For an indication of the likely cost, visit the Insurance Quote section of our website here.
Use your SMSF to Fund Premiums
Importantly you can use the funds in your SMSF to pay for your Life Insurance and / or Total & Permanent Disability Insurance Premiums alleviating any cashflow concerns about how to fund the Insurance Premiums. As an added benefit Life Insurance and Total & Permanent Disability Insurance Premiums paid by your SMSF may be tax deductible, providing up to an effective 15% reduction on the annual premium.
You select what Insurance Type you want
Importantly Life Insurance and Total & Permanent Disability Insurance through your SMSF is optional. You are under no obligation to have Insurance in your SMSF if you choose not to.
Macquarie FutureWise Insurance
If however you do want Life Insurance and / or Total & Permanent Disability Insurance through your SMSF, you can use the Macquarie Life FutureWise Insurance Product. Importantly you do not need to be a client of ESUPERFUND to use our Online Insurance Service.
Medicals
Depending on the amount of cover required, your age and current health, you may be required to undertake a medical examination when you apply for Life Insurance and/or Total & Permanent Disability Insurance through your SMSF. The cost of these medicals is generally borne by Macquarie Life.
For more about the Macquarie FutureWise Insurance Product
Before making an application for Life Insurance and / or Total & Permanent Disability Insurance through your SMSF, using the FutureWise Insurance Product, you must read the FutureWise Insurance Product Disclosure Statement.
General Advice Warning
The contents of this website are of a general nature only and have not been prepared to take into account any particular investor's objectives, financial situation or particular needs. Where this publication refers to a particular financial product then you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision about whether to acquire the product. We also recommend that you should seek professional advice from a financial adviser before making any decision to purchase any financial product referred to on this website. While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions.