Here is a quick lesson on SMSF that could potentially save you $17,700!
In recent years, much has changed in the superannuation industry, and lots of the focus has always been on the Self Managed Super (SMSF) space because of the rise of popularity of it.
One aspect of the SMSF space is compliance. Whilst it is a boring subject, getting it right can mean the difference of many years in comfortable retirement or not. if you have been able to make the jump and begin to make decisions about your own superannuation, that’s fantastic. It can be a very worthwhile experience, and can certainly make an enormous difference to your lifestyle at the end of your working life.
There is a underlying issue which faces a large number of SMSF’s and the trustees overseeing them, and it is generally overlooked for some reason. It is the issue of insurance within the fund.
Now, before you switch off at the sound of that subject, it actually forms part of your governance of your fund and is part of law in the SIS Act, so it’s not something I, or the insurance industry has made up. You MUST do this in order to remain compliant with your fund. If not, the ATO can issue a breach of rules and it could cost you up to $17,700!
So, how do you fix it?
In Regulation 4.09 (sorry for the legislative references, but you need to know it), the law states that you MUST consider SMSF insurance as part of your overall investment strategy.
This just means that there should be some form of Life Insurance or TPD Insurance cover on the members of the fund to ensure that there are funds available to the other members and estate if you or another member of your fund died or became disabled and met the conditions of release from your super.
As specialist insurance advisers, we can help you determine the appropriate level of protection needed in your fund, and will look at various insurers to make sure you are receiving the best possible benefit available.
To allow us to give you an idea of cost associated with this type of cover, complete the very simple form below and we will be in touch within 24 hours. A couple of moments could save a whole lot of heartache with the ATO.
Alternatively, feel free to call me on 1800 674 435 or EMAIL directly.
Specialist Life Insurance Adviser