One of the most important parts of setting a Self-Managed Superannuation Fund is making sure you take care of the risk management. When people setup a fund, they typically get quite excited and they roll their retail super across into their Self-Managed Superannuation Fund but they forget to replace the personal insurances they have in their existing retail super.
When you roll your super out you will effectively lose insurance benefits you have unless you keep a balance in there to pay for the premiums. So what do you need to do? Well before you roll it, you need to replace you insurance in your Self-Managed Superannuation Fund and why is it important to do it before – well for some reason, whether it be medically or financially you may be declined your insurance policy. So you want to ensure you can replace it before you cancel the old one.
When you are taking out an insurance policy because it is your own fund, you can choose from a large range of insurance providers out there on the market. This is a fantastic benefit as it allows you to suit the features and benefits to your own personal scenario. This means the premium you are paying is specific to your policy, you are not paying for features and benefits that you don’t need.