The disablement of insurance inside super?

Strategies

Sunday 01 June 2014

Unless we have significant legislative reform to the superannuation rules on temporary incapacity benefits, it will become increasingly rare for disability income insurance (DII) to be arranged through clients’ super funds notwithstanding new super law obligations on fund trustees to consider the insurance needs of their members.

In recent years there have been a series of tax and other super law developments which have weighed against holding DII inside of super, and arguably the final straw falls on 1 July this year when Superannuation Industry (Supervision) Act 1993 (SIS) provisions directed at new super fund insurance arrangements come into effect. While there are other considerations which can have a bearing on whether or not to hold insurance inside super such as, for example, the cashflow appeal of paying premiums out of super, in one way or another these developments may have a telling impact on the decision.

Download the full article

Share this

If you enjoyed reading this article, why not share it?

Simply copy and paste the text and include a link to the article. Please read the Expertise Articles Terms of Use before sharing.

Related articles


 

Subscribe to our monthly newsletter




We bring you technical updates, financial insights and industry expertise.

Thank you
There seems to be an error with your form

 *
 *
 *
The information you provide on this form will be retained by Macquarie and may, from time to time, be used to contact you about other products and services we feel would be of interest to you. If you do not wish to receive information of this nature or would like access to your personal information, please phone us on 1800 287 153. Please refer to our Privacy Policy for specific details.

Find out how we can help


If you'd like to speak to a specialist about how we can help build your business, get in touch.

Any information on this page in relation to mortgages has been prepared by Macquarie Securitisation Limited (MSL) Australian Credit Licence (ACL) 237863 ACN 003 297 336.

Unless stated otherwise, this information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502.

This information is provided for the use of licensed and accredited brokers and financial advisers only. In no circumstances is it to be used by a potential client for the purposes of making a decision about a financial product or class of products.

Except for Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 (MBL), any Macquarie entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.

Important Information

Restricted to financial services professionals

This information on this website is provided for the use of financial services professionals only. In no circumstances is it to be used by a potential investor for the purposes of making a decision about a financial product or class of products.

In order to proceed, please confirm that you are a financial services professional by clicking 'I accept'.