Insurance under SMSF – is my policy still tax deductible?

Insurance under SMSF – is my policy still tax deductible? from Mercury Wealth Management

By: Mercury Wealth Management  25-Oct-2012
Keywords: Business Insurance, Investment Loans, Insurance Calculators

It is important that all trustees of Self Managed Superannuation funds review their insurance policies so that they understand whether their insurance will still be 100% tax deductible under the new draft regulations. The table below highlights the specified proportion of the premium that will be tax deductible. It is important to note the difference between “any occupation” and “own occupation” definitions of total and permanent disablement (TPD) policies. Essentially any occupation policies will still be 100% tax deductible whilst own occupation policies will not. Trustees holding “own occupation” policies (including loss of limbs, activities of daily living, or cognitive loss) will be able to automatically claim 67% deductibility, or obtain actuarial certificate. *1. TPD any occupation = 100 *2. TPD any occupation with one or more of the following inclusions:(a) activities of daily living;(b) cognitive loss;(c) loss of limb = 100 *3. TPD own occupation = 67 *4. TPD own occupation with one or more of the following inclusions:(a) activities of daily living;(b) cognitive loss;(c) loss of limb = 67 *5. TPD own occupation bundled with death (life) cover = 80 *6. TPD own occupation bundled with death (life) cover with one or more of the following inclusions:(a) activities of daily living;(b) cognitive loss;(c) loss of limb = 80

Keywords: Business Insurance, Financial Planner, Financial Planners, Financial Strategies, Income Protection Insurance, Financial Advisor, Financial Services, Retirement Planning, Financial P, Insurance Calculators, Investment Loans, Investment Strategy, Personalised Financial Services, Superannuation Calculators,

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