Superannuation

New super rules affect insurance


Jarrod Sierocki

David Koch talks about how often you should review your super details.

Life insurance is super is still a good way to protect family finances, but check your cover.

HOLDING life insurance in a superannuation fund is about to get trickier.

It’s still a great way to protect a family’s finances without having to pay premiums from household budgets, but rule changes to superannuation coming in July will move the goalposts significantly.

While the Federal Government’s new $1.6 million cap on super pension balances seems higher than most Aussies will ever save for their retirement, the addition of a life insurance payout can dramatically change things.

Compare super funds

Pilot Partners director of taxation Murray Howlett said many Australians were “tuning out” of talk about the super changes, believing they would not be affected.

However, plenty of people in their 40s and 50s take out large life insurance policies in super to cover the costs of educating and raising children, and if …

Read the full article at: http://www.news.com.au/finance/superannuation/check-your-familys-life-insurance-protection-before-super-rule-change/news-story/9a84a3bed70f10b10e264c8c0ba947a9

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