Your SMSF can pay for 3 types of insurance for the members.
- Life insurance
- TPD (Total and permanent disability insurance)
- Income protection insurance
The advantage of having your super pay for these insurances is that if the super pays for the insurance it is a tax deduction for the fund, whereas if you buy it personally it is not a tax deduction for you. Most people still do not have the super pay because the tax rate in super is only 15%, so you don’t get much back anyway but it can help with personal cash flow.
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