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SMSF Life Insurance Cover
Our Self-Managed Superannuation Life Cover known as SMSF Life is Comprehensive Life Insurance cover for trustees of self managed superannuation funds to consider for members of the fund.
A self managed super fund (SMSF) is a superannuation trust structure that provides financial remuneration to its members in retirement. The main difference between SMSFs and other super funds is that SMSF members are also the trustees of the fund.
Our SMSF Life allows members to apply for our SMSF Life insurance cover which pays a lump sum benefit on the death or Terminal Illness of an insured member.
Plus, with SMSF Life you have the option to apply for Total and Permanent Disability (TPD) cover, for even greater protection and peace of mind.
With this valuable protection, the insured member is covered worldwide, 7 days a week, 24 hours a day and the benefit can be used to support the beneficiaries of the insured member in accordance with the governing rules of your self-managed superannuation fund and superannuation law.
What type of SMSF cover is available?
With SMSF Life you can apply for a Life Insurance benefit from $100,000 up to $1,500,000* (depending on the age of the insured member at the Policy Commencement Date).
This includes cover for Terminal Illness, where 100% of the insured member’s Life Insurance benefit is paid in advance if the insured member suffers a Terminal Illness.
$10,000 of the insured member’s Life Insurance benefit can also be advanced as a funeral benefit to assist with immediate funeral costs if the insured member dies.
You also have the option to apply for up to $1,500,000* Total and Permanent Disability cover (depending on the age of the insured member at the Policy Commencement Date and the insured member’s Life Insurance Benefit Amount. The optional cover cannot exceed the insured member’s Life Insurance Benefit Amount).
Who can take out this cover?
You can apply for SMSF Life if you are a member of a self-managed super fund (SMSF) and you are an Australian Resident aged 18-64 years. If accepted, the Life Insurance cover can continue for your life as long as premiums are paid.
Our optional SMSF Total and Permanent Disability (TPD) Cover is applicable for members up to the age of 59 years and will continue in force until they reach 65 years of age. TPD policies cease on the first anniversary of the policy after the age of 65 years.
SMSF Life Insurance Cover is only applicable for a maximum of four SMSF members. It is recommended that you check your SMSF’s governing rules and if any doubts exist, to seek advice.
10 reasons to choose this cover
- 1 Suitable for trustees of self managed superannuation funds to consider for members of the fund.
- 2 From $100,000 up to $1,500,000 Life Insurance cover for the support of beneficiaries of the insured member.
- 3 Easy to apply online, with absolutely no medical or blood tests, in just a few simple steps.
- 4 Terminal Illness Benefit with advance payment of 100% of the insured member’s Life Insurance benefit to you so it can be used in any way permitted under the governing rules of your self managed superannuation fund and superannuation laws.
- 5 Advance Funeral Benefit payment of $10,000, paid from the insured member’s Life Insurance benefit, to assist with the immediate costs of the insured member’s funeral. Whether this amount can be paid from your self managed superannuation fund, however, depends on the governing rules of the fund and superannuation laws.
- 6 Option to apply for up to $1,500,000 Total and Permanent Disability cover for insured members of the fund. This amount can be paid to the insured member when permitted under the governing rules of your self manged superannuation fund and superannuation laws.
- 7 Worldwide cover, 24 hours a day, 7 days a week so the insured member is always protected.
- 8 Automatic cost of living increases – up to 5% p.a. automatic benefit increase to help the insured member’s cover retain its future value (age limits apply).
- 9 Flexible premium payments – pay either monthly or annually from the self-managed superannuation fund bank account or credit union account with no additional charges or policy fees.
- 10 Secure Life Insurance cover which can be maintained regardless of changes in the insured member’s health, occupation or pastimes.
Summary of Cover
|Product Feature||Life Cover||TPD Cover|
|Minimum age at entry||18 yrs||18 yrs|
|Maximum age at entry||64 yrs||59 yrs|
|Benefit expiry date||Policy cancellation||Policy anniversary following your 65th birthday|
|Minimum sum insured||$100,000||$50,000|
|Maximum sum insured at Policy Commencement|
|Age 18 - 44||$1,500,000||$1,500,000|
|Age 45 - 54||$1,000,000||$1,000,000|
|Age 55 - 59||$750,000||$750,000|
|Age 60 - 64||$500,000||N/A|
|Inflation protection (automatic unless you opt to decline the increase)||5% p.a. each Policy Anniversary up to age 70||5% p.a. each Policy Anniversary up to age 64|
|Built in benefits||Terminal Illness benefit – an advance payment of 100% of the insured member’s life insurance Benefit Amount if the insured member suffers Terminal Illness.|
Advance Funeral benefit – an advance payment of $10,000 to assist with funeral costs if the insured member dies.