SMSF Life Insurance
Life insurance, TPD, and income protection options for Self-Managed Super Funds.General Advice, No advice fees, compliant policies, tailored cover
SMSF insurance — is this relevant to you?
SMSF insurance isn't just for retirees. Whether you're advising clients, growing wealth through property, or reviewing an existing fund — getting the insurance right matters.
Accountants & professionals
Advisers helping clients structure and manage their SMSF correctly
Property investors & self-directed retirees
Mums, dads, and investors growing wealth through super
Current trustees reviewing cover
Existing SMSF trustees checking if their insurance still fits
What is an SMSF?
A Self-Managed Superannuation Fund (SMSF) is a private super fund that you and up to six other members manage yourselves. Unlike retail or industry super funds, SMSF members are also the trustees — meaning you hold direct control over investment decisions and are personally responsible for ensuring the fund complies with superannuation and tax law.
The sole purpose of an SMSF is to provide retirement benefits for its members. While SMSFs offer greater flexibility in investment choices — including assets not available in standard funds — they come with significant administrative, legal, and financial obligations.
What is SMSF Insurance?
SMSF insurance refers to insurance policies held within your Self-Managed Super Fund to protect members and the fund's assets. Common types of insurance held within an SMSF include Life Insurance, Total and Permanent Disability (TPD) Insurance, and Income Protection Insurance.
When insurance is held within your SMSF, the fund owns the policy, premiums are paid from the fund's assets using pre-tax contributions, and benefits are paid to the member or their beneficiaries in accordance with superannuation rules. This structure can offer meaningful tax advantages and allow trustees to tailor coverage to each member's specific needs.
Get a QuoteWhy Use a Specialist SMSF Insurance Broker?
General insurance and life insurance are complex. SMSF insurance adds another layer — policies must be structured correctly to comply with superannuation law, meet conditions of release, and align with your fund’s investment strategy. A general insurer can tick a box; a specialist broker ensures your protection is compliant, cost-effective, and evolves with your SMSF.
Expertise
We understand both insurance and superannuation law — ensuring your policies are structured correctly from day one.
No advice fees
We are remunerated by insurers, not by you. No upfront fees for arranging your SMSF insurance.
Tailored policies
You determine each member's needs individually — not just the fund as a whole — and match policies accordingly.
Compliance documentation
You will receive policy schedules or certificate of currency which document your insurance as part of your investment strategy to satisfy ATO requirements.
Tax efficiency
Holding Life, Total and Permanent Disability and Income protection cover within your SMSF allows you to claim a tax deduction maximise within your SMSF structure.
Ongoing advocacy
We can review your cover and advocate for you at claim time. We work for you, not the insurer.
What Insurances Should an SMSF Have?
SMSF trustees are legally required under the Superannuation Industry (Supervision) Act to consider the insurance needs of each member as part of their fund’s investment strategy. While insurance is not mandatory, the decision must be made and documented. Below are the most common types of insurance held within an SMSF.
Life Insurance (held within your SMSF)
Life insurance held within your SMSF provides a lump sum benefit to a member's nominated beneficiaries upon their death or diagnosis of a terminal illness. Because the SMSF owns the policy and pays the premiums from fund assets, life insurance premiums are generally tax-deductible for the fund — reducing the effective cost of cover compared to holding it personally.
SMSF context: Premiums paid by the SMSF are generally tax-deductible for the fund. Benefits are paid according to superannuation law and your binding death benefit nominations.
Total and Permanent Disability (TPD) Insurance (held within your SMSF)
TPD insurance held within your SMSF provides a lump sum benefit if a member becomes totally and permanently disabled and is unable to work. It is critical that any TPD policy held inside an SMSF meets specific 'conditions of release' under superannuation law — this typically means the policy may use an 'may use an 'any occupation' definition rather than 'own occupation'. Morgan Insurance will ensure the policy definition is compliant.
SMSF context: Any occupation definitions are typically required. Own occupation TPD is generally not compliant for benefits to be paid from the SMSF.
Income Protection Insurance (held within your SMSF)
Income protection insurance held within your SMSF provides a regular monthly benefit — typically up to 70% of your pre-disability income — if you are temporarily unable to work due to illness or injury. Premiums for income protection insurance policies held within an SMSF are generally tax-deductible for the fund, making it a tax-efficient way to protect your income.
SMSF context: Premiums are generally tax-deductible for the fund. Benefit payments are subject to superannuation rules and tax treatment. Waiting periods and benefit periods should be reviewed carefully.
Landlord & Building Insurance (for SMSF property assets)
If your SMSF holds property — whether residential or commercial — it should be adequately insured. Landlord insurance covers rental-related risks such as tenant damage and loss of rent, while building insurance protects the structure from events like fire or storm damage. Ensuring the SMSF's property assets are properly insured is part of your trustee obligations.
SMSF context: Property held in your SMSF must be insured at replacement value. Failure to adequately insure SMSF assets can have compliance implications.
Can you insure for Trauma cover via an SMSF?
This is a superannuation law restriction — not a broker limitation.
SMSFs cannot hold trauma or critical illness insurance policies for members. However, trauma insurance can be arranged personally, outside of your SMSF. Personal trauma cover provides a tax-free lump sum upon diagnosis of a specified serious illness or injury — such as cancer, heart attack, or stroke — regardless of whether it affects your ability to work.
The payout provides immediate financial flexibility for medical costs, lifestyle changes, or debt repayment, without the restrictions of superannuation's conditions of release.
Learn about personal trauma coverYour Dedicated SMSF Insurance Broker
Katarzyna Urbanik
Director of Morgan Insurance - Senior Risk Adviser - Life Insurance, Income Protection, Trauma, TPD, Key Person Insurances
EXPERIENCE
20+ years in the financial & insurance industry
LOCATION
Brisbane, servicing Australia Wide
QUALIFICATIONS
- Bachelor of Business
- Diploma of Financial Planning (RG146)
- Advanced Diploma Financial Services
- Tier 2 General insurance compliance
Specialist SMSF Insurance Broker vs Doing It Yourself
Is insurance mandatory for an SMSF?
Not required — but legally must be considered.
In Australia, purchasing insurance is not strictly mandatory for SMSF trustees. However, the Superannuation Industry (Supervision) Act and Regulations place a clear legal obligation on trustees to consider the insurance needs of each member as part of the fund's documented investment strategy.
This consideration must be documented in writing as part of your fund's investment strategy, reviewed regularly — at minimum, whenever a member's circumstances change — and made prudently, with evidence that each member's needs were genuinely assessed.
The Australian Taxation Office (ATO), which regulates SMSFs, expects trustees to demonstrate this process. Simply ticking a box is not sufficient. A specialist SMSF insurance broker can help you document this process correctly.
Who pays for insurance in an SMSF?
The fund — not you personally — foots the bill.
Insurance premiums for policies held within your SMSF are paid from the fund's assets — not from your personal income. This is one of the key financial advantages of holding insurance inside your SMSF.
Premiums are paid using pre-tax super contributions, which can significantly reduce the after-tax cost of cover. Paying from the fund's assets preserves your personal cash flow. For eligible policies — Life, TPD, and Income Protection — the SMSF can generally claim the premium as a tax deduction, reducing the fund's taxable income.
The SMSF — not the individual member personally — is the policy owner. This means the fund's assets back the insurance, and any benefit payments flow back through the fund to the member or their beneficiaries in accordance with superannuation rules.
Why hold insurance through your SMSF?
Tax efficiency, cash flow, and compliance — all in one structure.
Holding insurance within your SMSF offers several compelling advantages, primarily related to tax efficiency and cash flow management. Premiums for eligible Life, TPD, and Income Protection policies paid by the SMSF are generally tax-deductible for the fund — effectively reducing the cost of cover compared to paying personally with after-tax income.
Paying premiums from the SMSF's assets means members aren't directly using their personal cash flow — a valuable benefit for managing household budgets. Beyond the financial benefits, holding insurance within an SMSF ensures the fund can provide a safety net for members and their dependants in the event of death, disability, or serious illness.
It also allows trustees to tailor insurance coverage to the specific needs of each member, ensuring appropriate protection as their circumstances evolve — and helps satisfy trustee obligations under the SIS Act.
Ready to protect your SMSF the right way?
Speak with a specialist SMSF insurance broker today. We'll assess each member's needs, find compliant and cost-effective cover, and handle everything on your behalf.
We are providing you with general advice only and not personal advice. We have not considered your objectives, financial situation or needs before acting on this advice. You should therefore consider the appropriateness of this advice in light of your own objectives, financial situation or needs, before acting on this advice.
We request that you review the enclosed documentation together with your Product Disclosure Statement/s (and Insurance Policy Wording/s) for these insurances when considering whether the cover, conditions and other terms of insurance continue to meet your requirements (including your needs, objectives and financial situation).
The Insurer's Product Disclosure Statement contains important information about the features of this policy and your rights and obligations as a policyholder (including the cooling off period and how to access the dispute resolution system of the Insurer). The Product Disclosure Statement/s were given to you when you originally applied for or last renewed the policies. If you require more copies, please do not hesitate to ask us.
