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SMSF Life Insurance & Income Protection

Protect Your Future with SMSF Life Insurance and Income Protection - Our Comprehensive Guide to Safeguarding Your Financial Well-Being

New Wave SMSF.

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Do you need Life Insurance & Income Protection?

Investing in insurance and income protection is an essential part of managing your SMSF. Your retirement funds could be seriously impacted if unforeseen events occur, such as an injury or illness that prevents you from working or even death. This is why SMSF trustees need to consider insurance as part of their overall investment strategy. 

At New Wave SMSF we understand the importance of protecting your future and can help you determine the appropriate level of life insurance and income protection cover for your SMSF. We can assist in reviewing your current policies, identifying gaps and advising on the most suitable products for your needs. 

Our team of experts can guide you through the complex process of selecting an insurance provider and policy. We can help you compare policies from different insurers, understand the terms and conditions, and make informed decisions that align with your SMSF investment strategy.

Don't leave your future to chance. Contact New Wave SMSF to discuss your SMSF life insurance and income protection needs today.

Life Insurance

Life insurance is a crucial aspect of planning for your future and protecting your loved ones. As a trustee of a self-managed superannuation fund (SMSF), it is important to consider the benefits of including life insurance in your fund. 

One of the main benefits of having life insurance in your SMSF is the ability to pay premiums from your fund's balance, which can provide tax benefits. Additionally, having life insurance can provide peace of mind knowing that in the event of your death, your family will have financial support to cover expenses and maintain their lifestyle.

Considerations when choosing life insurance for your SMSF include the level of coverage required, any exclusions or limitations, and the type of policy that suits your needs. It is important to seek professional advice to ensure that the life insurance policy you choose aligns with your financial goals and objectives.

The cost of life insurance in an SMSF can vary depending on a range of factors, including your age, health status, occupation, and the level of coverage required. However, as premiums are paid from your SMSF's balance, it may be more cost-effective than taking out insurance outside of your fund.

At New Wave SMSF accounting and financial planning, we can assist you in evaluating your life insurance options and determining the best strategy for your SMSF. Contact us today to learn more about how we can help you protect your financial future.

Income Protection

Protecting your income is an important aspect of financial planning, and it's no different when it comes to managing your self managed superannuation fund (SMSF). Income protection is an insurance policy that provides a replacement income if you are unable to work due to illness or injury. In the case of an SMSF, income protection can be critical in ensuring that you and your family are financially secure if you are unable to work and generate income.

The pros of having income protection in your SMSF are clear: it provides a safety net for you and your family in the event of an unexpected loss of income. This can be particularly important if you are self-employed, as your income may not be protected by an employer-provided policy. By having income protection as part of your SMSF, you can ensure that you have a safety net that is tailored to your individual circumstances.

There are, however, some considerations to keep in mind when it comes to income protection in an SMSF. One of the key factors is the cost. While income protection can be an affordable option, the premiums can be higher than other insurance policies. It's important to work with your SMSF advisor to understand the cost implications and ensure that you have the appropriate level of cover.

Another consideration is the waiting period for payments. Most income protection policies have a waiting period before payments begin. It's important to choose a waiting period that aligns with your needs and financial situation. The waiting period can impact the cost of the policy, so it's important to understand how it affects the overall cost and benefit of the policy.

In terms of costs, income protection is generally tax-deductible within an SMSF. This means that you can potentially reduce the overall cost of the policy by claiming the tax deduction.

At New Wave SMSF accounting and financial planning, we can assist you in evaluating your income protection needs and selecting the right policy for your SMSF. Our team of experts can guide you through the process of assessing your needs, comparing policies, and selecting the right one for you. We can also assist with the ongoing management of the policy, ensuring that you have the appropriate level of cover as your circumstances change over time.

If you're considering income protection for your SMSF, contact us today to discuss how we can help you protect your income and provide peace of mind for you and your loved ones.

Recent News

  • What services do you offer?
    New Wave SMSF financial planners offer a wide range of services to help clients manage their self-managed superannuation funds (SMSFs). Some of the services we offer include: SMSF set-up: An SMSF financial planner can assist clients with the establishment of a new SMSF, including the preparation of trust deeds, appointing trustees, and registering the fund with the Australian Taxation Office (ATO). Investment strategy development: SMSF financial planners can work with clients to develop an investment strategy that is aligned with their financial goals and risk appetite. This includes selecting investment assets, determining asset allocation, and monitoring investment performance. Compliance and administration: SMSF financial planners can help ensure that clients' SMSFs remain compliant with regulatory requirements, including the preparation and lodgement of annual tax returns, financial statements, and other reporting obligations. Retirement planning: SMSF financial planners can help clients plan for their retirement income needs, including determining their retirement goals, estimating retirement expenses, and developing a strategy for drawing down on their SMSF assets. Estate planning: SMSF financial planners can assist clients with estate planning, including the creation of binding death benefit nominations, the establishment of testamentary trusts, and the development of succession plans. Risk management: SMSF financial planners can help clients manage risk within their SMSFs, including insurance needs analysis, the selection of appropriate insurance products, and the development of risk management strategies.It’s a great way to help people navigate your site and can even boost your site’s SEO.
  • Is an SMSF the right choice for me?
    Whether an SMSF is suitable for you depends on various factors such as your financial goals, investment experience, and the time and resources you have available to manage the fund. Our financial planners can help you assess whether an SMSF is the right choice for your individual circumstances. Book in a free 30 Min consult today.
  • What are the investment options available to me in an SMSF?
    SMSFs offer a broad range of investment options, including direct property investments, shares, managed funds, and term deposits. However, trustees need to ensure that their investments are in line with their investment strategy and comply with regulatory requirements. Our Gold Coast SMSF Financial Planners can assist with guiding you towards the right investment strategy
  • How much super is recommended to start an SMSF?
    The amount of money required to start an SMSF will vary depending on your individual circumstances, goals, and investment strategy. While there is no minimum amount required by law to establish an SMSF, most financial experts suggest that you should have at least $200,000 to $500,000 in superannuation savings to make an SMSF cost-effective. Before deciding to start an SMSF, it's recommended to seek professional financial advice to ensure it's the right choice for your individual circumstance
  • What accounting services do you offer?
    New Wave SMSF is a forward thinking accounting firm providing tailored self managed superannuation fund (SMSF) services on the Gold Coast and across Australia. We assist clients with: Accounting, Structuring, SMSF Software, SMSF Setup, Tax, BAS, Compliance, SMSF Bookkeeping and Tax Advice. At New Wave, our mission is to empower, excite and build confidence in SMSF's by providing clarity in their figures.
  • What are the costs involved in setting up an SMSF?
    The costs of setting up an SMSF can vary depending on the complexity of the fund, the number of members, and the services required. Typically, the setup fees can range from $1,000 to $3,000, while ongoing costs can range from $2,000 to $3,000 per year. We can provide you with a fixed fee quote based on the size and complexity of your work.
  • What are the rules and regulations around SMSFs?
    SMSFs are regulated by the Australian Taxation Office (ATO) and must comply with the Superannuation Industry (Supervision) Act 1993 (SIS Act) and the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations). The rules cover various aspects of SMSF management, including trustee duties, investment restrictions, contribution limits, and reporting requirements.
  • How do I ensure compliance with ATO regulations?
    To ensure compliance with ATO regulations, SMSF trustees need to maintain accurate and up-to-date records, prepare and lodge annual returns, and follow investment restrictions. Engaging an experienced SMSF accountant can help ensure compliance with ATO regulations and provide peace of mind.
  • What are the tax implications of having an SMSF?
    SMSFs enjoy concessional tax treatment, with income earned within the fund taxed at a maximum rate of 15% (or 0% if in pension phase). Additionally, SMSFs may be eligible for capital gains tax (CGT) discounts if assets are held for longer than 12 months. However, there are various tax rules and regulations that SMSF trustees need to be aware of to avoid penalties and fines.
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