nbn8

Hi

Both myself and OH have life insurance/death benefit with our jobs. Would it be best to buy a policy here (Bupa) have agreed that we could have a policy now and transfer once we emigrate. Or should be hang on and buy a policy in Oz? The broker mentioned we may have to wait over 12 months once we arrive in Oz to qualify for any life insurance is the correct? Thanks Nicky

NikiL

I get life insurance as part of my super, which started as soon as I started work.........and I gather its pretty standard, so not sure 12 months is correct. Any life insurance you buy in the UK becomes taxable in the UK if it needs to pay out as soon as you become non resident.

nbn8

Thank you - these brokers dont like to tell you about the taxable bit do they!

JAJ

Unclear what is meant by this. Payouts from term life insurance are not treated as income, usually.

NikiL

Equally, you don't usually have life insurance in one country when you are resident in another.

My life insurance company in the UK told me before we moved that if we were non residents then any payout would be taxed at source.

JAJ

Did they put that advice in writing with reference to the law? If no, it may be simply wrong.

nbn8

Thanks for all of your info. Ive just spoken to our broker today who has advised 100% that any payout would not be taxed if even we are resident in Oz and have a British policy.

FHI

If you are moving to Aus as a permanent resident the 12 month period is not normally an issue?