News : Insurance

Insurance death benefits have tax traps

January 27, 2022

The tax treatment of a lump sum death benefit from an insurance policy held by an SMSF will vary and cannot be applied to all beneficiaries.

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Insurance, Investments

Insurance key part of investment strategy

November 29, 2021

Tia Thomas

SMSF trustees must remember the provision of insurance via their fund is covered by the investment strategy and must carry appropriate reasoning.

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Insurance, Superannuation

Cancel life cover before starting fund wind-up

June 8, 2021

Jason Spits

SMSFs holding life insurance policies should cancel them before starting the wind-up process to ensure the fund is not incorrectly viewed as active.

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ATO, Insurance

Prior insurance vital for collectables

June 8, 2021

Tia Thomas

Trustees who invest in collectable and personal-use assets inside an SMSF are being advised by the ATO to consider insurance before purchasing the asset.

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ASIC, Financial Planning, Insurance

ASIC moves on AMP over deceased client fees

May 27, 2021

Tia Thomas

ASIC has started legal action against five AMP companies in regards to claims they charged advice fees and insurance premiums to dead customers.

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Insurance

ATO clarifies collectables insurance stance

March 18, 2021

Jason Spits

SMSFs must directly hold insurance for collectables, the ATO has stated after the SMSF Association sought clarity on the matter.

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Insurance

Six-member funds offer insurance benefits

March 17, 2021

Jason Spits

Six-member funds will allow SMSFs to better pay for life insurance cover and retain any associated benefits for more members.

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Insurance

Correct evidence needed for TPD

January 19, 2021

Tharshini Ashokan

Disabled members will not automatically meet the TPD definition for tax purposes despite satisfying both the underwriter and SIS Act definitions, an SMSF technical expert warns.

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Administration, Insurance

Flaw in admin systems detected

January 14, 2021

Darin Tyson-Chan

A weakness exists in standard administration software being used for SMSFs that could impact certain fund strategies, a technical mentor has said.

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Insurance

Split policy a TPD solution

December 16, 2020

Darin Tyson-Chan

An SMSF specialist has suggested a split total and permanent disablement insurance policy can allow cover to be held in the fund while ensuring policy definitions not allowable under super law are contained in it.

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