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DEATH BENEFITS NON-DEPENDENT BENEFICIARY
In the event of your death, the policy proceeds will be paid into your superannuation account.
The proceeds together with your accumulated super balance will then be paid to your nominated beneficiary(ies) and/or your estate.
If your superannuation is paid to a non-dependent beneficiary(ies) on your death, it is anticipated that tax will apply. The amount of tax payable will depend on the components of the superannuation benefit, and whether the trustee has claimed the premium as a tax deduction.
When taking out insurance, there are generally two ways you can pay your premium.
• Stepped Premium – your premium increases every year with your age.
• Level Premium – your premium generally increases at a lower rate than stepped premium and is based on your age when the policy commences.
While stepped premiums are usually lower in the early years, level premiums can be a more cost-effective option if you retain the insurance over a longer period. If insurance cover is only required for a short time frame, a stepped premium may be more appropriate and cost-effective.