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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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