FAQs – SMSF

SMSF (Self-Managed Super Fund) Life Insurance FAQs

Common questions around SMSF (Self-Managed Super Fund) Life Insurance.
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An SMSF allows up to four members to pool their resources in one super fund.

An SMSF is different from other super funds in that SMSF members are generally also the trustees of the fund. In practice, this means that SMSF members manage the fund themselves for their benefit, and must comply with all taxation and superannuation regulations.

Having an SMSF can be a good option if you want more control of how your retirement savings are invested. But you also need to ensure you’re prepared to put the time and money into meeting your SMSF obligations.

The Australian Securities & Investments Commission (ASIC) outlines the importance of covering all the bases when setting up a SMSF.

Life Insurance and SMSFs

The Superannuation Industry (Supervision) Act stipulates that all trustees of SMSFs must actively consider the need for Life Insurance covering every SMSF member. This requires formal documentation in the fund’s minutes and must be reviewed on an annual basis.

There are potential benefits of buying Life Insurance through your SMSF, including:

  • Affordability: You can pay your Life Insurance and TPD Insurance premiums from your SMSF fund, rather than out of your own pocket.
  • Tax savings: Contributions to superannuation funds can be tax-deductible, encouraging members to increase their contribution levels.
  • Tax-deductible premiums: Instead of claiming insurance premiums as an annual tax deduction, the Trustee of the SMSF may be able to claim a tax deduction on the insurance premiums paid by the fund which reduces tax paid on capital gains, investment earnings and other taxable contributions received.

Keeping up with SMSF rules

From 1 July 2017, a number of changes to the superannuation system were introduced to improve the ‘sustainability, flexibility and integrity’ of the Australian superannuation system.

NobleOak’s SMSF Life Insurance

SMSF Life Insurance is a simple and cost-effective way to provide for your family, and protect other SMSF members, if something happens to you.
Some of the key benefits of SMSF Life Insurance include:

High cover levels

You can apply for up to $15 million cover for Life Cover and terminal illness, and up to $5 million for Total and Permanent Disability (TPD) Insurance, without having to go through a financial adviser. That’s much higher than most direct insurers.

Low premiums

We don’t pay fees or commissions to advisers. That means lower premiums for you.

Fully underwritten cover

We take the time to get to know you upfront, so we can tailor your cover and premium. That gives you more certainty at claim time.
Please note that the information we provide is not advice but general information only.

There are potential benefits of buying Life Insurance through your SMSF.

For example, you can pay your premiums from the fund instead of out of your own pocket.

Your SMSF may be able to claim a tax deduction on the premiums which reduces tax paid on capital gains, investment earnings and other taxable contributions received.

NobleOak Premium Life Direct offers high levels of cover. You can apply for up to $15 million cover of Life Cover and up to $5 million of Total and Permanent Disability (TPD) cover, without having to go through a financial adviser.

In addition, NobleOak provides the unique flexibility to move your insurance out of SMSF without cancelling your plan.
This could be beneficial if your health deteriorates, your SMSF members’ requirements changes, or you no longer want to pay premiums out of your SMSF funds.

Why choose NobleOak Life Insurance?

While we are very proud of the cover we provide, a simple belief in 'doing the right thing' sets us apart.

Low premiums

At NobleOak, you buy directly from us,
so you don't pay for the cost of advice
or for unnecessary overheads.

Fully underwritten insurance

We only offer fully underwritten Life
Insurance, tailored by you. This minimises
the risk of unforeseen delays or surprises
in the event of a claim.

Simple & straightforward

We aim to avoid overly complex terms.
We simply provide great value,
comprehensive Life Insurance.

Award winning

We are the only Life Insurer to win the Canstar Outstanding Value Award for Direct Life Insurance in five consecutive years from 2016 to 2020.

Help protect your family with
NobleOak, Australia's most awarded
Direct Life Insurer 2020

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