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SMSFs and life insurance

09 March 2012

It’s a sad fact of life… but we’re all human. That means that one day you, or a member of your SMSF, will die. There’s also a possibility that you or they could become disabled. 

Does your fund have enough cash in reserve to pay out a death or disablement benefit? Or will it have to sell down some important assets at a time which might not suit you? An investment property? Your business premises? 

What if a member of your fund falls ill? Will your fund be able to help them pull through financially? 

A life insurance strategy, expertly structured by your financial adviser, can help.

Did you know?

•When properly structured, a term life insurance policy held by a SMSF over the life of a member can be used to pay out that member’s death benefit, removing the need to sell down assets

•A total and permanent disability (TPD) policy held by a SMSF can be used to pay a disablement benefit to a member if they can never work again in any capacity. When linked to BT’s Flexible Linking Plus held outside your SMSF, a benefit can be paid if a member can never work again in their own occupation

•Benefits from an income protection policy held by a SMSF can be paid to a member while recovering from an illness or injury. When linked to BT’s Income Linking Plus held outside your SMSF, the member can also receive ancillary benefits like nursing care, crisis benefits, travel, etc.

Help is never far away. Talk to your adviser today about structuring life insurance for you and your SMSF members.

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