SMSF Life Insurance – Goal For Every Trustee


My grandfather had always told to be prepared for life. Recently, as a family, we invested into an SMSF. Even though this is a savings fund, the recent changes of the ATO, trustees now can invest into an SMSF life insurance. If you are part of SMSF and run, you are regulated by the super laws. They dictate the life insurance is acceptable for every trusties, yet those who possess life insurance outside the fund if the members are catered from an outside insurance group. Every one of the trustees now can have one, nonetheless, all the members of the SMSF should hold a meeting and decide which one SMSF you should go with and if it is accepted by all members.

Life Insurance

In Australia, there 3 types of SMSF life insurance: Total and permanent disability insurance or also known as TPD; Life insurance; and Income protection insurance which it does not include redundancy cover. If you wish to claim the life insurance in the SMSF, one of the dozens of conditions should be met such as permanent or temporary incapacity, a death of a member and terminal medical condition.

In regards of tax consideration, it should be noted that life insurance packages are not deductible as a separate tax expensive, but they come from the overall tax expense inside the SMSF. There are two insurance providers in Australia:

  • AustBrokers Countrywide is a specialised firm for SMSF insurance, that have professional and friendly customer services. For all the information you require you can always visit their website or contact them on their phone or email.
  • Australian Group Insurance – which offers the best SMSF life insurances at reliable rates. Backed by experience, the AGI group will always be here for advice and giving you the best service available. The SMSF will pay all monthly premium subscription on your behalf.

Usually, these companies have online applications that it will take you around five minutes to fill and receive an instant response. The life insurance plan provides TPD and death cover up to $1.250.000 and protection to your income up to $10k.

The 21st century brought more dynamic in our lives, making us more on the stress level and prone to a lot of risk factors. However, visionary companies have been one step ahead and took it upon themselves to offer the best life insurance on the market. As the SMSF will grow with members, to be certain that everyone will receive their part of a bargain, investing into life insurance is the smartest move you can make.

Goran Nikolov is a content writer of Protista, a website where you can find a lot of interesting lists. He is from Macedonia and has a passion to write lists about everything that surrounds him, especially about sports, health, music, technology and history. Goran loves to play basketball in his free time, enjoys playing on his guitar and sharing his thoughts with others.