With growing pressure on the household budget, families may choose to hold their life insurance within superannuation to relieve some financial pressure.
A number of changes in the federal budget will affect day-to-day living, including increases to Medicare payments, the re-introduction of the fuel excise indexation and the three-year temporary budget repair levy for high income earners.
As a result, many Australian will be looking for ways to cut back their expenditure, and this may extend to peoples insurance choices.
But beware, making decisions that may alleviate financial pressure in the medium term may have drastic future consequences.
If you reduce your cover now and experience a life changing event such as death, serious illness or permanent disability, would your reduced cover still give you the peace of mind knowing your loved ones are financially equal or better off?
In some circumstances, there is the option of running your risk insurance through your superannuation. This effectively means that the premiums are paid for through the balance of the fund rather than the personal pocket while using pre-tax dollars rather than after-tax dollars for Life & TPD cover.
With all insurance options it is best to speak to your financial adviser to obtain recommendations suitable to your circumstances and needs.
If you would like to make an appointment to speak about this, please contact our office on (07) 5574 0667.
Wahlstrom Financial Services Pty Ltd, ABN 43 078 015 988, is a Corporate Authorised Representative of Millennium3 Financial Services Pty Ltd ABN 61 094 529 987 an Australian Financial Services Licensee number 244252. Millennium3 Financial Services Pty Ltd and Wahlstrom Financial Services Pty Ltd are not responsible for the advice given regarding lending. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement. The views and opinions expressed within this letter are those of the author and do not necessarily reflect those of Millennium3 Financial Services Pty Ltd.
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