As part of the Stronger Super measures, the Government recently introduced new obligations for SMSF Trustees. In addition to requiring a regular review of the fund’s investment strategy, trustees need also consider insurance cover for the fund’s members. Insurances may include life, TPD (total and permanent disablement), trauma and income protection.
There is no obligation to take out a particular insurance, simply that the needs of the members be appropriately considered. In some cases, for example a retired member with no debt, there may be little need for insurance.
Steps to Ensure Compliance:
- Undertake a review of the insurance needs of the members of your fund,
- Document your process and the decision in the fund’s investment strategy or minutes of trustee meetings that are held during the income year,
- Superannuation fund auditors will be required to report on compliance to this new obligation.
Need Assistance? We would welcome the opportunity to arrange for a review of your current insurances. We have expertise in both personal insurances and in SMSF requirements.