Purchasing insurance in superannuation

Superannuation is one of the most tax-effective ways for your clients to save for their retirement.

It's also one of the best places to take out personal insurances such as:

• MLC Life Cover
• MLC Total and Permanent Disability
• MLC Income Protection.

Buying insurance in super can be more affordable for clients:

• if they are self-employed, they may be able to claim their super investments as a tax deduction, regardless of whether they are used by the fund to purchase insurance or investments
• as they benefit from 'up-front' tax concessions
• if they are an employee and are eligible to make salary sacrifice contributions, they may be able to buy insurance through superannuation with pre-tax dollars, or
• if they make personal after-tax superannuation contributions and meet certain other conditions, they may qualify for a Government co-contribution of up to $1500 which could be used to purchase insurance
• can pay for insurance without reducing their disposable income
• If your client doesn't have adequate insurance they may consider having premiums deducted from their existing superannuation balance.
• The trade off with this option is some of the money that could otherwise meet their living expenses in retirement will be used.

Click here for further information.

To find out more about any of the MLC insurance products, get in touch with your MLC Representative or call MLC on 133 652.