Before reading on, we need to ensure we’ve got the legals sorted, and you know that StakeSMSF does not provide financial product advice or recommend any financial products. This information is general in nature and does not consider the objectives, circumstances or financial needs of any particular individual.
Insurance and Transferring Super to SMSF
When transferring an existing super to an SMSF, you have to decide whether to keep or replace any existing insurance cover. Your options are:
1. Get new insurance in your SMSF;
2. Keep insurance by maintaining existing super account;
3. Cancel insurance by closing account without replacement;
If you transfer 100% of your existing super account to an SMSF, any insurance cover attached to that account will be lost.
If you decide to keep a balance in your existing super account (to maintain insurance cover), you should contact your existing fund and check their requirements and if they specify a minimum balance or a requirement for regular contributions.
Some insurers will enable you to do a ‘cancel and rewrite’, which involves transferring an existing policy to your SMSF.
A licensed financial adviser can help you figure out your insurance needs and recommend suitable policies to suit your needs. Online comparison websites can also assist you in researching and obtaining insurance.
AGI Group Insurances Pty Ltd (AGI) is a referral partner of StakeSMSF. AGI is a third-party insurance administrator based in Sydney, specialising in group insurance. AGI holds an Australian Financial Services License (Number: 379565) under the Corporations Act 2001.
AGI can be contacted via their website, by emailing firstname.lastname@example.org or by phone: 02 9190 2500.
This content is not a recommendation to acquire any insurance product available through AGI. If you obtain an insurance policy through AGI, Stakeshop Pty Ltd may receive commission payments of up to 25% plus GST on the insurance premiums paid.