What About your Insurance Benefits?

A partial rollover involves transferring only part of your superannuation balance to a new fund or SMSF while leaving some funds in the existing account. This strategy can allow you to maintain the insurance benefits in your current fund while also enjoying the investment options or control available in your SMSF.

Here’s how it typically works:

1. Assess Your Needs: Review your current insurance policies and confirm whether they meet your coverage requirements.

2. Determine the Rollover Amount: Decide how much you’ll transfer to your SMSF while leaving enough in the original fund to cover ongoing insurance premiums.

3. Communicate with Both Funds: Notify both your existing super fund and your SMSF provider about your intent to perform a partial rollover.

It’s worth noting that some funds may have minimum balance requirements to retain insurance, so double-check with your provider before proceeding.

Why Consider a Partial Rollover?

A partial rollover offers flexibility, giving you the best of both worlds:

1. Retain Insurance Coverage: You’ll continue to benefit from the existing insurance policy without the hassle of applying for new coverage.

2. Enjoy Investment Freedom: Gain the control and benefits of managing investments within your SMSF.

3. Minimise Costs: Avoid potential costs associated with underwriting a new insurance policy or higher premiums due to changes in health or age.

Final Thoughts

Rolling over your super is a significant financial decision, and like all things in life, it’s worth pausing to think it through. Understanding the implications for your insurance benefits and exploring strategies like a partial rollover can help protect you and your loved ones while maximising the benefits of your SMSF.If you’re unsure about your options or need help navigating the process, please seek specialist advice.Because sometimes, doing things halfway - like a partial rollover - is the smarter choice.