Can I purchase life insurance through my self-managed super fund?

3 November 2022

The short answer is yes, you can! Buying life insurance through super can be a convenient and affordable way to get the cover you need.

There are, however, a number of things you need to consider before you decide how you want to structure your life insurance.

What type of cover can you buy through super?

With NobleOak, the two types of cover you can buy through super are:

NobleOak Life Cover – which protects your family’s financial security if you die or are diagnosed with a terminal illness, and
NobleOak Total & Permanent Disability (TPD) Insurance – which protects yourself and your family from financial stress if you’re permanently disabled and unable to work.

What are the advantages of taking out life insurance through super?

Using your superannuation to pay for your life insurance can be a good way to help you afford the cover you need, without eating into your budget. You also have the opportunity to make before-tax contributions to super to pay for your insurance (e.g. through salary sacrifice), which may help reduce the amount of tax you pay.

What are the disadvantages of taking out life insurance through super?

If you don’t make additional super contributions to pay your insurance premiums, your retirement savings will reduce. Also, there are different rules around life insurance policies owned through super that may make benefit payments less tax-effective for your beneficiaries.

This is a general guide only. Readers should consult a taxation adviser for their personal circumstances.

For more information, visit the dedicated product page for Life Insurance within your SMSF.

To learn more about NobleOak’s Life Insurance products or to request a quote, call NobleOak on 1300 041 494. As a AMA member you can receive a 10% lifetime discount on Life cover within NobleOak’s My Protection Plan – be sure to mention ‘AMA Victoria’ when you call.

AMA Victoria Preferred Suppliers