Insurance premiums can be paid by a SMSF on behalf of the Beneficiaries (Members) in the SMSF.
Although insurance premiums can be paid by a SMSF, you can generally get better rates for insurance through Industry Superannuation Funds. Industry Funds negotiate group rates with insurers at better rates than what you can get on an individual basis. For this reason it is generally good to keep an Industry Fund open and have your insurance paid from there. Just keep a small balance in your Industry Super Fund for this purpose.
If you decide to pay insurance from your SMSF (or Industry Fund, as explained above), the types of insurance are:
- 1. Life insurance
- 2. Total and permanent disability (TPD) insurance
- 3. Income protection insurance
It is worthwhile to note that Life Insurance premiums is not deductable in a personal capacity as an income tax expense but is deductable as a tax expense in a SMSF.
To obtain SMSF Insurance service within Australia with Supperanuation Warehouse, you can use any Insurance provider of your choice. The SMSF will then pay the insurance premiums on your behalf. Note that we do not recommend insurance providers and do not receive commissions on insurance.