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?

As of 1 April 2021, IA Life is no longer accepting applications for new SMSF Life Insurance policies. Existing policies will remain unaffected.

Australian residents aged 18-64 years who are members of your self managed superannuation fund were able to apply for SMSF Life Insurance Cover until 31 March 2021. If accepted, the Life Insurance cover can continue for 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.

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Summary of Cover

Product FeatureLife CoverTPD Cover
Minimum age at entry18 yrs18 yrs
Maximum age at entry64 yrs59 yrs
Benefit expiry datePolicy cancellationPolicy 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$500,000N/A
Inflation protection (automatic unless you opt to decline the increase)5% p.a. each Policy Anniversary up to age 705% p.a. each Policy Anniversary up to age 64
Built in benefitsTerminal 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.
   

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