SMSF trustees should be reviewing their insurance coverage at least once a year as part of the fund’s annual strategy review, a wealth manager said.
However, Glen Mesch, head of advice and growth at Integro Private Wealth, said certain things should also prompt an earlier look, such as a job change, a change of debt level, children becoming financially independent, marriage or divorce, a growing super balance or asset base, or a renewal notice with a big premium jump.
“The real cost of set-and-forget insurance is that your cover amount may not be appropriate, being either too high or even too low. Premiums climb steeply over time due to age-rated pricing but cover often stays sized for a much earlier life stage,” Mesch told SMSF Adviser.
“Every dollar going out in excess premiums is a dollar not growing in the fund. Over 10–15 years, that can easily add up to $100,000–$200,000 in lost retirement savings, plus the income that money would have generated down the track.”
When reviewing an SMSF member’s insurance, Mesch said there are three things which should be assessed. First, the sum insured to make sure it still reflects actual debts, dependants and financial commitments.
Edwards brings nearly two decades of experience in the financial advice industry including nine years at Lighthouse where he was a director and senior financial planner, before which he held similar positions at Geographe Financial Group and NAB.
The individuals will set up shop in the Bunbury office of AMD Chartered Accountants, which Integro partnered with in 2024.
Integro managing partner Justin Gilmour said the Lighthouse merger builds on Integro’s partnership with AMD established in 2024, allowing the firm to deliver a stronger value proposition in the region.
