LIFE INSURANCE
Life insurance pays a lump sum payment upon death and depending upon the insurer will also be payable upon diagnosis of a terminal illness. The lump sum amount will be paid to the policy owner or nominated beneficiaries. You can take out life cover generally between the ages of 15 and 75 and depending on your insurer, it covers you 24 hours a day, 7 days a week anywhere in the world (length of time overseas for cover to remain valid varies between insurers).

STRUCTURE
Life insurance can be taken inside or outside of the superannuation environment. It is important to note that all current and relevant superannuation legislation applies (eg. capacity to contribute, contribution caps etc.).

TAXATION
The premiums paid on life insurance held outside of the superannuation environment are generally not tax deductible. Upon claim, the lump sum payment is tax free.

The premiums paid on life insurance held through the superannuation environment will be tax deductible to the fund. Upon claim, the taxation of the lump sum benefit will depend upon the following factors:

• Whether the recipient is a dependant or non-dependant;
• The recipients age; and
• Whether the benefit is taken as a lump sum or income stream.