Tailored Protection (previously CommInsure Protection) SMSF Plan is closed to new business. Existing customers can still increase, decrease, add options and obtain replacement policies. They will also continue to receive product improvements to ensure they provide ongoing valuable, contemporary protection. However existing clients aren’t able to change indemnity income protection to agreed value effective from 1 April 2020.
This product is customised, easy to use and designed to offer SIS-aligned cover to SMSF trustees. This has the potential to reduce the compliance burden on trustees when selecting a product, as the cover has been specifically designed to comply with the rules relating to holding insurance in super.
Given the legal obligation trustees have to consider holding insurance to provide cover for their members, we have a couple of SMSF related documents that you might find useful:
- Our SMSF Insurance Strategy document is a quick and easy insurance check that can assist with determining if insurance cover (inside or outside the SMSF) is appropriate and adequate.
- The ATO’s Product Ruling on Tailored Protection’s Split Total and Permanent Disability (TPD) Cover.
You can also rest assured that at AIA we can provide the necessary cover for your existing Tailored Protection SMSF clients. Existing SMSF Plan policy holders can apply for a new Replacement SMSF Plan policy. (Those that don’t have an existing SMSF Plan policy cannot set up a new policy after 1 April 2020).
For more information about our SMSF documents, and how Tailored Protection’s SMSF Plan can continue to help your existing SMSF Plan clients, please contact your AIA Client Development Manager or Client Retention Manager.