In previous articles we have discussed how to go about calculating appropriate levels of life and disability insurance cover based on individual needs. Once that is done, it is important to consider the most appropriate insurance policy ownership structures and beneficiary options. For most families, this is usually in the name of the life insured, within a superannuation fund or jointly owned with a spouse.

The table below shows the advantages and disadvantages of the most common methods.

Having made the decision to protect yourself and your family from the financial impact of premature death or long-term disability, it is important to ensure that any benefits received go to the right person or people. It is also important to reduce the after tax cost of premiums as well as maximise the after tax benefit received in the event of a claim. As always, it is important to ensure that you comply with any relevant rules and legal requirements.

If you have a policy in place, you may not need to apply for cover and, instead, may be able to simply change policy ownership. If this is the case, care should be taken to ensure that there are no inadvertent breaches of relevant rules.

If you would like a review of the efficiency of your current policy ownership, contact your adviser for a referral to one of Elston’s risk insurance team.