What types of insurance can I hold inside my SMSF?

Your SMSF can hold Life Insurance, Total and Permanent Disability (TPD) cover, and Income Protection. These are the three options that fit cleanly inside the fund and give you the flexibility you need while we handle the administration.

Are insurance premiums tax deductible when paid from my SMSF?

Yes. Life insurance and Income Protection premiums are generally fully tax deductible for the fund. TPD premiums are also deductible when the policy uses the standard “any occupation” definition. This is one of the biggest reasons many trustees move their cover inside their SMSF.

What are the biggest benefits of holding insurance inside my SMSF?

You pay premiums from the fund (which are often tax deductible), claim proceeds land tax-free straight into your SMSF, and you keep complete control over who receives the money and how it is used. Most trustees we work with end up with 20–40% lower effective cost and significantly higher cover levels than they had outside super.

Is insurance compulsory in an SMSF?

No, it is not compulsory. As trustee you simply need to consider whether it is appropriate for each member and note that decision in your Investment Strategy. We make that review straightforward every year as part of your SMSF Health Check.

Can I transfer my existing retail insurance policies into my SMSF?

In most cases you cannot directly transfer an existing policy. The cleanest and most common approach is to arrange new cover owned by the SMSF. We review your current policies, compare the numbers, and show you the exact difference so you can decide with confidence.

How do insurance claims work inside an SMSF?

When a claim is approved, the insurer pays the benefit directly into your SMSF bank account. Your dedicated Client Service Manager supports you through the paperwork, and you then decide how to use the funds according to your trust deed. Everything stays inside your fund and under your control.

Should I hold insurance inside or outside my SMSF?

It depends on your personal situation. Inside the SMSF usually gives better tax treatment and control. Outside can sometimes allow faster access (especially for Income Protection). We give you a side-by-side comparison tailored to your SMSF so you can see which option actually works best for you.

How does Income Protection work when held inside an SMSF?

Monthly benefits are paid to your SMSF rather than directly to you. This can be tax-effective, but access is through the fund. Many trustees therefore choose to keep Income Protection outside while holding Life and TPD inside. We’ll explain both paths clearly during your strategy call.

What is TPD insurance and when can I claim it?

TPD pays a lump sum if an injury or illness permanently prevents you from working. Policies inside SMSFs use the “any occupation” definition so the benefit can be released from the fund when needed. We ensure your cover matches your lifestyle and occupation from day one.

Who controls the beneficiary nominations on SMSF insurance?

You do. Because the policy is owned by your SMSF, the trustees control how the benefit is distributed. You can use Binding Death Benefit Nominations or your estate plan to direct the money exactly where you want it to go.

Can my SMSF hold trauma or critical illness insurance?

Generally no. New trauma policies have not been permitted inside SMSFs since 1 July 2014. We can still arrange trauma cover outside the fund if it makes sense for your overall protection strategy.

How often should I review my SMSF insurance?

We recommend a review at least once a year or whenever your life or financial situation changes. Your Client Service Manager will prompt you each year during your SMSF Health Check so nothing is ever left to chance.

Will I actually save money by moving insurance into my SMSF?

Most trustees we help save between 20% and 40% on premiums while securing substantially higher levels of cover. The tax deductions and better underwriting usually make the move worthwhile, but we always show you the exact numbers first.

What happens to the insurance money once it is paid into my SMSF?

The proceeds become part of your fund balance. You can then use them to pay down debt, start a pension, make payments to beneficiaries, or reinvest - giving you real flexibility and control over your family’s financial future.

How does Ez SMSF help with insurance?

We take the entire process off your hands. Your dedicated Client Service Manager reviews your needs, arranges the right cover, coordinates with your SMSF administration, and supports you with any future claims. One team. One point of contact. Everything simplified.

Protect What Matters Most.

Your family. Your lifestyle. Your SMSF.

Insurance inside your SMSF gives you full control, better cover and tax advantages - all while we handle the paperwork.

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How Insurance in SMSFs Works.

You stay in complete control.

The insurance policy is owned by your SMSF, not an external company.

Premiums are paid from your fund and are generally tax-deductible inside the super environment.

When a claim is paid, the proceeds go straight into your SMSF, tax-free - ready for you to direct exactly where they’re needed.

No chasing retail super funds. No waiting for head-office approvals. Just one dedicated Client Service Manager who organises everything and keeps you in the driver’s seat.

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Regular Super Insurance vs Insurance Inside an SMSF

Default group or “unitised” cover inside retail super is cheap for a reason - low sums insured, blanket exclusions and no personal underwriting.

Move it into your SMSF and you get:

Medically underwritten policies designed for your exact health and lifestyle.
Significantly higher cover amounts.
Better pricing once tax deductions are factored in.
Full trustee control over who receives the payout and how it’s used.

Your SMSF, your rules and far better protection.

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	Regular Superannuation	Ez SMSF
Premium cost Premiums are paid directly from your SMSF and are generally tax-deductible. This usually means 20–40% lower effective cost compared with retail super policies that carry extra retail loadings.	Often higher (retail loading)	20–40% lower on average
Underwriting Retail super uses basic group cover with no medical questions (cheap but limited). Inside your SMSF we arrange full medical underwriting tailored to your health and lifestyle for better pricing and higher cover.	Basic group cover - no medical questions	Full medical underwriting - tailored to you
Cover amount Most retail super policies cap cover at low levels. Inside your SMSF you can secure 2-3× higher sums insured because the policy is medically underwritten and owned by your fund.	Usually capped low	2 - 3× higher sums insured
Tax treatment Premiums paid from your SMSF are generally tax-deductible. When a claim is paid, the full proceeds land tax-free straight into your SMSF - unlike many retail policies where payouts can be taxed.	Proceeds often taxed on payout	Proceeds paid tax-free into your SMSF
Trustee control You, as trustee, own the policy and make every decision. You choose beneficiaries, control payout timing and decide exactly how the money is used - complete control that retail super simply doesn’t offer.	Limited - fund decides	100% yours - you choose beneficiaries and strategy
Payout flexibility The insurance money goes straight into your SMSF bank account. You then decide how to use it - pay down debt, start a pension, support family or reinvest - giving you real flexibility and peace of mind.	Restricted rules	Flexible - use for family, debt, or reinvestment

Your Insurance Options Inside an SMSF.

Placing your personal insurance inside your SMSF delivers clear advantages you won’t find with retail super or standalone policies.

Premiums are paid from your fund and are tax-deductible, while any claim proceeds land tax-free straight into your SMSF for you to direct exactly as you wish.

You keep complete control over beneficiaries, payout timing and investment strategy, and your dedicated Client Service Manager coordinates everything alongside your SMSF administration - so nothing slips through the cracks.

Life Insurance

Pay out tax-free to your SMSF beneficiaries so your family is looked after exactly as you planned.

Covers your loved ones if the unexpected happens
Proceeds stay inside super for tax-free investment or pension use
Flexible beneficiary nominations you control

Total & Permanent Disability (TPD)

Protect your lifestyle and your fund if you can never work again.

Lump-sum payout inside your SMSF
Funds can be used for medical costs, debt, or to keep your retirement on track
Trustee-led decisions on how the money is released

Income Protection

Replace up to 75–100% of your income, tax-free inside super.

Monthly benefit paid to your SMSF while you recover
Keeps contributions and lifestyle intact
Premiums tax-deductible - genuine peace of mind

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Already have an SMSF?

Transfer your SMSF to Ez SMSF

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Ez SMSF transfers your SMSF electronically into our administration with no hassle, leaving you to focus on what’s most important - your retirement.

Protect Your SMSF Assets Too.

Don’t just insure the people - insure the bricks, shares, property and everything else inside your fund.

We arrange general insurance for you in one straightforward process:

Building & Landlord Insurance
Exotic Insurance - Precious metals, diamonds & gems, cryptocurrency storage.

Everything coordinated by your dedicated Client Service Manager so your entire SMSF stays protected.

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Protect What Matters Most.

Your family. Your lifestyle. Your SMSF.

How Insurance in SMSFs Works.

Regular Super Insurance vs Insurance Inside an SMSF

Your Insurance Options Inside an SMSF.

Life Insurance

Total & Permanent Disability (TPD)

Income Protection

Already have an SMSF?

Transfer your SMSF to Ez SMSF

instantly & for free!

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Protect Your SMSF Assets Too.

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Insurance FAQs.