If you hold your TPD policy in your own name, the costs of the premium will be funded from your own personal cash flow.
- You may get your claim quicker as the claim will be paid out to you directly instead of going through a super fund.
- The premiums are paid out of your after tax income, which reduces your cash flow; and
- The cost of the insurance held through a personal name is generally higher than for a Group income protection policy held within a super fund.
When TPD is recommended to be held in your personal name
- You have sufficient cash flow to cover the premiums;
- You wish to avoid any benefit payment being impacted by superannuation benefit payment rules.