I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

Insurance in a Self-Managed Super Fund

Not too many people focus on insurance in a self-managed super fund. Insurance inside a self-managed super fund is beneficial from a tax perspective. First and foremost, the fund gets the tax deduction for salary continuance, for TPD or permanent total disability or life insurance inside the fund.

Unfortunately, the fund doesn't get a tax deduction for trauma, and that probably should be sitting outside the superannuation fund. Moreover, when the fund climbs at policy, in effect what will happen is no tax on the fund. There's a perfect place to have it and at the end of the day when the fund climbs that money, they can then do something with it.

For example, if you have to look at a retiree, this doesn't make sense inside the fund to see mom and dad if they are already retired. But mom and dad should be looking at using the money for superannuation fund, the earnings of a superannuation fund, or even the contributions being made to the children inside that fund to provide life insurance policy. Whether it's a $5,000 policy or million dollar policy.

Cases of Permanent Disability

You see, if something happens to them like a permanent disability or a life-threatening illness, what will happen is that money can come out of that policy and then be used to fund for the child under the disability and income stream for them. Let's face it. If something like that happens, and you haven't got insurance in place, it means that the financial future of mom and dad is certainly going to be limited even if they want to look after the child.

This is also useful if one of the children dies. Obviously, there is going to be a pay here. If mom and dad are dependents, money will go back to mom and dad and most of the time it's going to fill in a concessional tax rate. But more importantly, if you've got grandchildren, that money can be used inside the fund to pay out income streams to your grandchildren.

It's a very good idea simply by looking at the insurance inside the fund. But again, have a chat with a special adviser in this and they he/she will show you the great benefits of having insurances. It's probably the weakest part of self-managed super fund strategy. In fact, there's only about 12% self-managed super fund you have insurance can pay you almost 90 of the 100% of industry and retail funds.

Those types of funds are great if you want insurances. If you're jumping and becoming engaged in the family superannuation fund, make sure that you look at insurances. You can seek the advice of the experts at www.australiansuperfinder.com.au

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