Insurance policies and proceeds in an SMSF

National Conference 2022

Arranging insurance inside an SMSF sound easy, until you consider the potential complexities to be addressed, including:

  • which entity or account pays the premium and receives the proceeds and what are the tax consequences,
  • how are policies or insurance (compensation) payments moved to super,
  • impact of insurance on TBC and TSB,
  • purposes for insurance inside super (not just a tick box in the investment strategy !), and
  • claiming under TPD or IP insurance and maintaining capacity as a trustee.

By attending this session, participants will develop an understanding of:

  • Reasons why insurance would be held or maintained in a SMSF,
  • Practical strategies for managing insurance outcomes, and
  • Issues to consider to head off problems with insurance proceeds.

The contents of this resource are taken to be correct at the time of publication.

Disclaimer: Technical Papers contain general advice only and are prepared without taking into account particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to the individual circumstances of your client. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001. © SMSF Association