Tax deductable insurance premiums? Where the life insurance is provided through a superannuation
fund, contributions made to fund insurance premiums are tax deductible
for self employed persons and substantially self-employed persons and
employers.
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There is no limit on the level of death or total and permanent
insurance (TPD) cover which can be provided through a superannuation
fund. There are however limits on the amount of lump sum benefits
which can be paid at concessionally taxed rates. The RBL system
applies a concessionally taxed limit of the member's pension RBL
on the level of lump sum death benefits.
For most people the concessionally taxed limit is the pension RBL which is $1,238,440 for the 2004/2005 financial year. For those with a transitional pension RBL, the limit will be higher. Should You Insure Through Superannuation?When deciding whether to fund life insurance through a superannuation fund, there are a number of factors that need to be considered including:a) tax consequences; b) reasonable benefit limits (RBL’s); and c) estate planning issues. |
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