Just Why Life Insurance And SMSFS Are Better Together

Many people know they need life insurance but do not want to spend a lot of money on premiums. A solution is to consider a term policy that only provides protection for a specific period of time—usually 10 or 20 years. These policies cost much less than permanent policies and may be suitable if you only plan to protect your family in case of early death.

Life insurance is just as important for you as it is for your family. Statistically speaking, most people will outlive their assets. The point of life insurance is not to replace your monthly paycheck or bank account—it has to ensure that your family does not have to struggle after you die. That can give them a sense of financial stability and security in a time when they need it most. If you are at risk for outliving your money, a few simple life insurance tips could be helpful to remember: 1) Buy now. As soon as possible after graduating from college or starting a career, start buying into your employer’s group plan if they offer one; 2) Match coverage with income.


Better cash flow

Just like businesses need capital to stay afloat, so do individuals? If you are looking for better cash flow, an SMSF is a possible option for you. What is an SMSF? SMSF life insurance is simply a self-managed super fund. It can be used to consolidate all your financial holdings into one place. And help achieve your future goals through extra funds. The money that would usually go into superannuation goes straight into an account known as a ‘retirement account’ within your SMSF instead; funds can then be used to buy life insurance.

Tax benefits

The benefits of SMSF life insurance are more than just tax-effective. The true benefit comes from controlling your money and assets in retirement. Which makes SMSFs an investment that is driven by self-interest rather than being driven by a financial adviser or fund manager. For that reason, I can confidently say that one of the biggest benefits is peace of mind.


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The tax benefits available under an SMSF can be an appealing reason to set one up. Especially if you have a large amount of money sitting in your existing super account that you are keen to get working for you. However, just because it is there does not mean it should be used. Regulatory costs and reporting requirements offset the tax advantages of having a fund. That is why it pays to weigh up all your options before deciding whether to make use of them.

You choose

Many people, when they are retiring, want to live in comfort. Unfortunately, retirement can also be very expensive. The good news is that you can protect yourself from these costs by getting a suitable life insurance policy. With one of these policies, you will be able to get regular payments in case something happens to you. Furthermore, if you need long-term care, life insurance can help with that too. When it comes time for your retirement party, you will not have any reason to stress out about paying off your medical bills or making sure your family is safe after retirement.


Property protection

Protection is a key part of any successful SMSF, but it is not usually a top priority for trustees. That is a shame – because protecting your fund from losses due to your home being repossessed or damaged means you can relax, knowing that your family will be looked after if anything ever happens to you. An SMSF life insurance package can be just what you need – particularly if you have non-superannuation assets, such as an investment property. Our teams work with many of Australia’s largest life insurers – so we have access to every single type of cover available on today’s market.

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