Insurance through SMSF

Information on Insurance for SMSF members (From ATO)

Investment Strategy (ATO)

The following information on this page comes directly from the ATO website:

When preparing your investment strategy you're required to consider whether to hold insurance cover for each member of your SMSF. Your SMSF can generally provide insurance for a member for an event that is consistent with one of these conditions of release of the member's super:

  • Death
  • Terminal Medical Condition
  • Permanent Incapacity (causing the member to permanently cease working)
  • Temporary Incapacity (causing the member to temporarily cease working)"
Source: Insurance for members

SMSF Insurance Deductability (ATO)

The following information on this page comes directly from the ATO website:

Death, total and permanent disability, terminal illness and income protection insurance premiums

A specific deduction is available to the trustee of a complying super fund in relation to insurance premiums paid for insurance policies that are for current or contingent liabilities to provide death or disability benefits. A deduction is available in relation to the insurance premiums to provide for the following types of death or disability benefits:

  • super death benefits
  • terminal medical condition benefits
  • disability super benefits
  • benefits provided due to temporary inability to engage in gainful employment for a specified period.
Source: Self-managed superannuation funds – deductibility of expenses

General Advice Warning

WHYSUPER does not provide financial product advice or recommend any products. This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement. We recommend that you consult a licensed or authorised financial adviser if you require financial advice that takes into account your personal circumstances. While the sources for the material are considered reliable and we have taken all due care, responsibility is not accepted for any errors, inaccuries or omissions. You can check whether a person is a licensed or authorised financial adviser by visiting the Australian Securities and Investments Commission at Prior to setting up a SMSF please consider the additional fees that typically apply for an SMSF including an ATO Supervisory Levy, Corporate Trustee Setup Fees, Investment Fee and Ongoing ASIC Fees.