Powered by MOMENTUM MEDIA
subscribe to our newsletter
Practitioners told to review SMSF client insurance

Practitioners told to review SMSF client insurance

Miranda Brownlee
06 February 2017 — 1 minute read

In light of the revised transfer balance cap and changes to contribution caps, SMSF practitioners will need to reassess whether their clients’ insurance remain appropriate.

Australian Executor Trustees senior technical manager Julie Steed says following the changes to super, SMSFs with larger balances may want to reduce the amount of insurance they hold in their fund.

“No one will want $1 million worth of insurance in super if they’ve got larger account balances,” she said.

Ms Steed said SMSF practitioners will need to look for “simple opportunities” like investment bonds outside of super instead.

“[Assets like this] will pass through very quickly and easily through to beneficiaries or legal representatives who distribute benefits through the trust estate and that will be very important for people.” 

Practitioners told to review SMSF client insurance
smsfadviser logo
join the discussion

Do you think the government should reinstate the accountants’ exemption for SMSF advice?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super