Problem
Insurances Amount Insured Premium p.a Policy Owner
Life & TPD $1,500,000 $2,200 Stephen
Life & TPD $1,000,000 $1,100 Madeline
Salary continuance $145kpa $950 Super(Stephen)
Salary continuance $25kpa $430 Super(Madeline)
1. Identify Stephen's and Madeline's current insurance cover. Identify whether each policy's premiums are deductible and whether the proceeds from each of the policies are assessable and at what rate.
2. You are considering recommending a restructure to the way Stephen and Madeline hold their existing insurance cover, to improve their tax outcomes. What would you recommend to achieve this outcome, and what additional considerations are needed when undertaking your recommended strategy.