Insurance is sometimes a “forgotten area” for SMSFs. This paper addresses the crucial role of insurance in SMSFs, by considering the following:
- does insurance have a role to play in SMSFs?
- can group life be offered to SMSFs?
- what happens to insurance after commencement of an income stream?
- is there a role for insurance in connection with an SMSF borrowing strategy?
- deductions for premiums/assessability of insurance proceeds
- insurance applications: life, disability, trauma, terminal illness, income replacement
- tax effectively managing receipt of taxable component/element untaxed inthe fund
- allocation of insurance proceeds to reserve and availability of tax deductionsfor death benefit payments.