There are lots of decisions you need to make when setting up an SMSF. So you may have chosen to keep your existing superannuation account with an industry or retail fund to maintain your life insurance cover. There may be some advantages to this strategy, but it may not be the most cost-effective option or the only way to maintain your life insurance.
Here are some things to consider when thinking about your options:
You may be able to transfer your life insurance:
Like some other SMSF life insurance providers, the ESUPERFUND SMSF Master Insurance Plan gives trustees the option to transfer any existing life insurance they have into their SMSF. This means if you have existing life insurance cover with your industry or retail superfund, you can apply to transfer it into your SMSF, allowing you to maintain your life insurance and potentially save fees, by consolidating multiple super accounts.
The time spent on maintaining both accounts:
Having multiple super accounts may also require you to spend additional time administering them, going through paperwork and ensuring compliance.
The cost of paying multiple fees:
Every super fund will include admin fees, investment fees and potentially contribution fees. Maintaining multiple super accounts may mean you end up paying multiple sets of fees. If you consolidate all your super accounts, then some of the money you would have spent paying fees could be included in your SMSF’s investment portfolio.
There are a number of financial decisions and other implications to consider before you transfer or consolidate your super accounts or life insurance cover. Follow this link for more information about the ESUPERFUND SMSF Master Insurance Plan.
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