Insurance premiums and taxation

Posted by James Cavanough on 16-Mar-2016 09:00:00
Find me on:
LinkedIn

Lantern_Advisory_insurance_premiums_and_taxationInsurance premiums

The following information explains the different options when it comes to insurance premiums and how premiums are taxed.
 
Premiums for all types of personal insurance will vary with age, gender and smoking status. Occupation and medical history may also affect the cost of premiums.
 
Premium options include:
 
  • Level premiums: the premium rate is fixed when you start the policy and does not change as you get older except in line with CPI indexation. Level premiums are initially higher (than stepped premiums) but will be more stable over time. This can help with affordability and reduce the risk that premiums will become unaffordable as you get older
 
  • Stepped premiums: the premium rate increases each year according to your age. Stepped premiums are initially more affordable than level premiums but over time may become more expensive. However, this option can provide you with flexibility as your needs change over time
James Cavanough from Lantern Advisory will help you determine which premium option is most appropriate for you.

Taxation

Insurance premiums and claim proceeds are taxed based on the type of insurance policy and beneficiary, as well as if the policy is held inside or outside of superannuation. You should seek specialist taxation advice to check the taxation applicable to your circumstances.
 
Lantern_Advisory_insurance_taxation_superannuation
 

Want more information on how your can protect your assets with the right type of insurance to suit you, your family and your business?

Instantly download the FREE Lantern Advisory Ebook "Strategic Insurance to Protect Your Wealth" by clicking the image below. We provide you with information on best practices and pitalls to avoid as not all insurance policies are created equally.

You are also welcome to contact Ian Walker or James Cavanough from Lantern Advisory on 07 3002 2690 for a free and confidential discussion regarding your personal situation.

Lantern Advisory Strategic Insurance to Protect Your Wealth

Our promise to you - your contact details will remain confidential at all times. You will receive approximately one email per month with valuable information to improve your financial situation, however you can subscribe from this correspondence at any time.

PS. Sign up to receive the Lantern Advisory Blog - regular financial planning tips and updates.

Topics: insurance, financial plan, taxation

Subscribe to Email Updates

Recent Posts

Posts by Topic

see all