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Can my SMSF join an industry fund?

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I have a SMSF and have found that the insurance policies I have been looking at are miles more expensive than the one I had with Australian Super. Could I rejoin the industry fund so I can access the insurance policy benefit? Can I join via my SMSF and treat the money as an investment of the fund?

I talked to Paul Schroder of Australian Super as some advisers have said that industry funds won’t accept money and provide insurance coverage if there are no regular payments from an employee via the compulsory super that all employees are supposed to have paid into their super funds.

He told me on my 2GB Super Show that the fund will accept money and provide insurance coverage even if there are no payments linked to compulsory super. In fact, he says the fund is trying to accommodate people with SMSFs rather than turning them off.

If you’re wondering why industry super funds have lower premiums for insurance, it’s because they lump their million or so members together and that gives them a lot of buying power to twist the insurance companies’ arms for a great deal.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Tuesday, February 07, 2012

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