Life Insurance within SMSF
With NobleOak, you can apply for comprehensive Life Insurance Cover within your SMSF.![Platinum Trusted Service Award 2024 - Badge - 1x1](https://assets.nobleoak.com.au/wp-content/uploads/2024/01/19165614/Platinum-Trusted-Service-Award-2024-Badge-1x1-1-100x100.jpg)
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NobleOak’s Life cover can be taken out within an SMSF
Up to $25 million cover, paid as a lump sum
Upon the SMSF member’s death, NobleOak will pay the agreed cover amount as a lump sum to the trustee of the SMSF.
Pay your premiums with your super contributions
Insurance premiums are paid from superannuation contributions, which are typically tax deductible. Check with your accountant.
How much cover can I apply for?
SMSF trustees can apply for up to $25,000,000 in cover for the members of their fund.
Maximum Cover Level
$25,000,000
Maximum Entry Age
74 years old
Guaranteed Renewable Age
99 years old
Terminal Illness Benefit
Yes
What does our SMSF Life Insurance cover provide?
Cover Types
NobleOak offers Life Cover, TPD (any occupation) and Disability Income insurance through superannuation.
Premiums
Your insurance premiums are paid using superannuation contributions, which are often tax-deductible. Check with your accountant.
Tax on benefits
Following a claim, Life cover benefits paid by the SMSF to a financially dependant beneficiary are generally tax-free. Benefits paid to non-financially dependant beneficiaries typically attract tax.
Retirement savings
Insurance premiums paid reduce your retirement savings, so you may want to make additional super contributions.
Cover Types
NobleOak offers a full range of covers, including Life Cover, TPD, Trauma Insurance and Income Protection Insurance.
Premiums
You pay your insurance premiums from your after-tax income.
Tax on benefits
Benefits paid are generally tax-free when paid to your nominated beneficiaries.
Retirement savings
Your retirement savings are not effected by your insurance premiums.
SMSF (Self-Managed Super Fund) Life Insurance FAQs
An SMSF is different to an industry or retail super fund – it’s a private super fund that members manage themselves.
An SMSF is different from other super funds in that SMSF members are also the trustees of the fund, except where a corporate trustee is appointed. In practice, this means that SMSF members manage the fund themselves for their benefit, and they are responsible for complying with all taxation and superannuation regulations. Between 2 and 6 members are allowed in an SMSF although care is needed when determining the number of members because some State and Territory laws restrict the number of trustees a trust can have to less than six. An SMSF is a trust.
Having an SMSF can be a good option if you want more control of how your retirement savings are invested. But you also need to ensure you’re prepared to put the time and money into meeting your SMSF obligations.
The Australian Securities & Investments Commission (ASIC) outlines the importance of covering all the bases when setting up a SMSF.
Life Insurance and SMSFs
An SMSF must be run for the sole purpose of providing retirement benefits for the members or their dependants; and all decisions made by SMSF trustees must be in the best financial interests of the members. The Superannuation Industry (Supervision) Act stipulates that all trustees of SMSFs must take steps to consider the need for Life Insurance covering every SMSF member. This requires formal documentation in the fund’s minutes and must be reviewed on an annual basis.
There can be a number of potential benefits of buying Life Insurance through your SMSF, including:
- Tax savings: Contributions to superannuation funds can be tax-deductible, encouraging members to increase their contribution levels within the prescribed limits.
- Tax-deductible premiums: the Trustee of the SMSF may be able to claim a tax deduction on the insurance premiums paid by the fund which reduces tax paid on capital gains, investment earnings and other taxable contributions received.
Superannuation is a detailed area which changes from time to time, so we suggest you obtain tax or accounting advice when considering your taxation affairs or those of your SMSF.
NobleOak’s Life Insurance
Taking Life Insurance through your SMSF can be a simple and cost-effective way to provide for your family, and protect other SMSF members, if you were to pass away.
Some of the benefits of choosing NobleOak’s Life Insurance cover:
High cover levels
You can apply for up to $25 million cover for Life Cover, and up to $5 million for Total and Permanent Disability (TPD) Insurance, without having to go through a financial adviser.
Competitive premiums
We look to keep an eye on our overheads and this can mean competitive premiums for you.
Fully underwritten cover
We take the time to get to know you upfront with a comprehensive underwriting process. That gives you more certainty at claim time.
There are potential benefits of buying Life Insurance through your SMSF.
For example, you can pay your premiums from the fund instead of out of your own pocket.
Your SMSF may be able to claim a tax deduction on the premiums which reduces tax paid on capital gains, investment earnings and other taxable contributions received. Keep in mind though that superannuation is a detailed area which changes from time to time, so we suggest you obtain tax or accounting advice when considering your taxation affairs or those of your SMSF.
NobleOak Premium Life Direct offers high levels of cover. You can apply for up to $15 million cover of Life Cover and up to $5 million of Total and Permanent Disability (TPD) cover, without having to go through a financial adviser.
In addition, NobleOak provides the flexibility to move your insurance out of your SMSF without cancelling your plan.
This could be beneficial if your SMSF members’ requirements changes, or you no longer want to pay premiums out of your SMSF funds.
Policies, terms and conditions vary between Insurance Providers, so it’s always advised to read the Product Disclosure Statement (PDS) and compare covers before you apply for Life Insurance. Because superannuation is a complex area which changes from time to time, and each person’s tax situation is specific, we suggest you obtain tax or accounting advice when considering your taxation affairs in the superannuation context.
4 Reasons to choose NobleOak
Low insurance premiums
Fully underwritten insurance
Simple & straightforward policies
Award winning life cover
Tools and guides
Find out how much Life Insurance and Income Protection cover you may need.
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