What kind of life insurance can I buy through my SMSF?
Most retail or industry superfunds offer some units of death benefit or TPD insurance. By using your SMSF instead of a retail fund you are able to considerably increase the level of your insurance cover, as well as choose other options.
In most cases your SMSF will be able to buy a combination of term life, TPD and income protection policies. Since April 2010 they have also been permitted to hold trauma insurance, but this type of policy is often better held outside of your SMSF.
Some insurance companies allow you to link policies together with some elements held inside the SMSF to maximise the tax benefits, and other policies held outside to provide better access to the money if you make a claim. This can also serve to lower the overall cost of premiums.