Insurance Inside Super
The Advantages of having insurance inside super
- Deduction for premiums paid can be used to offset tax paid on contribution.
- It is tax effective.
- It is convenient to have premiums deducted from your super account.
- You can contribute extra to super to pay premiums via salary sacrifice of through after-tax money and you may be eligible for Government co-contribution.
- It is always better to have some cover rather than no cover.
- Insurance plans in super are very basic.
- Possible issues when accessing benefits due to possible difference in definitions.
- There are strict super rules as to who can receive the benefits.
- If benefits are left to a non tax dependent, the tax implication can be high.
- There may not be continuity of cover if you leave the fund.
- You do not have control as the trustee of the fund will have discretion.