Insurance premiums can be paid by an SMSF on behalf of the Beneficiaries (Members) in the SMSF.
Although insurance premiums can be paid by an 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.
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 are not deductible in a personal capacity as an income tax expense but is deductible as a tax expense in an SMSF.
To obtain SMSF Insurance service within Australia with Superannuation Warehouse, you can use any Insurance provider of your choice. The SMSF will then pay the insurance premiums on your behalf.