Owning insurance inside vs outside super 💬

In this Deep Dive, Phil sat down with Neha to unpack one of the most common and often misunderstood parts of setting up insurance: how your cover is structured between superannuation and personal ownership.

Key takeaways:

✅ Different covers, different rules: Life and TPD can sit inside or outside super, income protection can be either, and trauma always sits outside.

✅ Super linked policies: A mix of both worlds. They let you pay most premiums from super while keeping stronger definitions (like own occupation TPD) outside for better claim protection.

✅ Tax trade offs: Inside super gives cash flow relief and a 15% tax deduction on premiums. Outside super offers higher deductions if you’re on a higher income, but costs more upfront.

✅ Claim outcomes differ: "Any occupation" TPD inside super is stricter than "own occupation" outside super. For some clients, that difference means hundreds of thousands in claim value.

✅ Skye’s philosophy: Life and TPD are usually owned through super for efficiency, with TPD super linked to secure tax benefits and flexibility. It’s about balance, protection that’s smart, affordable, and built to last.

💡 The takeaway: insurance structure isn’t just admin. It determines how much you’re protected, how claims are paid, and what you actually keep in your pocket after tax.

#skyedeepdive #insuranceadvice #financialwellbeing #superannuation #lifetpd #riskmanagement