WARNING: clients should obtain advice from a licensed financial adviser if they are considering holding insurance in their SMSF as there are complicated issues with replacing existing insurances held in retail or industry super funds.
Your SMSF can pay for 3 types of insurance for the members.
- Life insurance
- TPD (Total and permanent disability insurance)
- Income protection insurance
The cost of insurances paid for by the SMSF are a tax deduction for the SMSF.
When having your SMSF pay for insurance make sure that the account and invoices are in the name of the SMSF and not your personal name.