We all know that it's vital to have the right insurance in place, but most of us would rather spend our money on ourselves and our families rather than insurance.

This has led to Australia being one of the most under-insured countries in the developed world.

But there is a way to have comprehensive insurance without impacting on your cashflow.

Superannuation rules allow you to fund your insurance premiums through your super fund, minimising the effect that insurance premiums can have on your cashflow.

How does it work?

Your income protection, life insurance and TPD (total & permanent disability) insurance can be owned by and held within your super fund, with the premiums being paid out of your super balance.

In the event of a claim the proceeds will be paid to your super fund, then released to you (or your estate) as a benefit.

What are the advantages?

Because the premiums are paid out of your super balance, you can access comprehensive cover without any impact on your hip pocket.

Are there any disadvantages?

There are a number of limitations when placing insurance within super, so you need to speak with us to make sure holding your insurance within your super is the right strategy for your own individual needs and objectives.

Want the government to pay for your insurance?

Depending on your taxable income, you may be able to have the government pay for some of your insurance. This works through the government co-contribution scheme, which matches your super contribution up to 100% depending on your taxable income.

Important

This strategy isn't right for everyone, but can be an effective way of funding your insurance if cash flow is a concern. If you'd like to know if this option could work for you please call us on 1800 744 482.

Call us today on 1800 744 482 or get a free online quote

TradeInsure.com.au is owned and operated by Equita Financial Services Pty Ltd. Equita Financial Services and its advisers are authorised representatives of Synchron - Australian Financial Services Licence Number 243313.

Advice on life insurance products including income protection, life insurance, TPD insurance and trauma insurance is provided under Synchron's licence. We are not authorised to provide personal advice on public liability and tool insurance, however we provide this service through our referral partner, Direct Insurance Brokers Pty Ltd.

Any information on this website should be seen as general advice only, as it does not take into account your personal circumstances. You should not act upon any information on this website without first consulting a qualified financial adviser, such as those employed by Equita Financial Services.