Buying personal insurances such as life and total and permanent disability cover through super makes super sense.

This is because you may be able to take advantage of a range of ‘up-front’ tax concessions that are generally not available when insuring outside super.

Purchasing your insurances inside superannuation allows you to:

• Benefit from ‘up-front’ tax concessions for example:

• if you’re self-employed, you may be able to claim your superannuation contributions as a tax deduction regardless of whether they are used by the fund to buy insurance or investments.
• if you’re an employee and are eligible to make salary sacrifice contributions, you may be able to buy insurance through a superannuation fund with pre-tax dollars, and
• you may qualify for a Government co-contribution of up to $1,000 that could be used to cover the cost of insurance, if you make personal after-tax superannuation contributions (and meet certain other conditions).

Pay for insurance without reducing your disposable income for example:

• Instead of making additional contributions to cover the cost of insurance, you can arrange to have the premiums deducted from your existing superannuation balance. The trade-off with this option is that you will use up some of the money that could otherwise meet your living expenses in retirement.

Please contact NBC Financial Services, or call (08) 8723 9822 to discuss purchasing your insurances inside superannuation.