Why consider insurance?

Under superannuation rules, SMSF trustees must consider the need to provide insurance cover for members. Holding insurance in your SMSF can:

  • Allow you to acquire levels of cover to protect you and your family without impacting your personal cash flow
  • Provide liquidity to allow a fund to pay benefits or repay a loan without needing to sell fund assets prematurely
  • Be cost effective since premiums are generally tax deductible to the fund therefore reducing the cost of cover, making it more affordable

However it does have the overall effect of eroding the super balance.

Features & benefits

Flexibility and options

A range of cover options each with a flexible cover structure and premium. 

Industry leader

With over 140 years of experience and over 3 million customers, CommInsure is a leader in the Australian insurance industry - providing quality insurance, paying all legitimate claims.

Cost effective

As the SMSF insurance policy is held within super, premiums can be paid from the SMSF bank account – not personal bank accounts. These premiums may also be tax deductible to the SMSF.

Designed for SMSFs

Designed to comply with rules around holding insurance within super.

Types of cover

Life Care

Life Care provides a lump sum payment in the event of terminal illness or death. There’s no limit on the amount of cover (subject to underwriting rules) a member can apply for.

Accidental Death Cover

Cover up to $1 million if a member dies in an accident. This can only be purchased together with an equal or higher amount of Life Care.

Total and Permanent Disability Cover (TPD)

TPD protects members and their families from the financial consequences of a serious injury or illness.  A one-off lump sum of up to $5 million is paid if the member is totally and permanently disabled.

Income Protection

Up to 75% of a member’s income is paid if sickness or injury prevents them from being able to work.

Essential Cover

Simple, low cost cover which can pay up to 75% of a member’s income if an accident prevents them from being able to work.

Read more about these cover options

Couple together

How to apply

It’s important to make sure you structure your insurance cover correctly so it suits your members’ needs. 
 
  1. Talk to one of our SMSF specialists first. The specialist will ask you questions about your SMSF including info on your members and current cover. They will then put you in touch with an adviser
  2. The adviser will discuss cover options and work with you on an insurance structure before you apply.

If you’re an adviser explore our SMSF Plan

  1. Call CommInsure on 13 1056 immediately after you become disabled. Your claim will be directed to a Case Manager who will discuss your situation and explain how we assess your claim and what information we may need
  2. We send you a claim kit (email or post) within 48 hours. This pack will include a letter explaining the next steps, relevant claim forms and FAQs
  3. Our Case Managers will review the info you have provided in the claim form and start the assessing your claim.  Please keep in mind that some waiting periods may apply, depending on the specifics of your policy, which will be clearly indicated on your policy documentation
  4. We let you know the outcome of your claim. For accepted claims, we pay your benefit. We aim to assess all claims within five business days of receiving your completed form. Your claim decision may be deferred if we need additional information to complete the claim assessment.

Read more about making a claim

Things you should know

This information is prepared by Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945. Registered office: Ground Floor, Tower 1, 201 Sussex Street, Sydney, NSW 2000. For terms and conditions of the products mentioned, please visit any of our branches, or call us on 1800 138 363, Monday to Friday, 8.30am to 5.30pm AEST.

CommInsure is a registered business name of the Colonial Mutual Life Assurance Society Limited ABN 12 004 021 809 AFSL 235035 (CMLA). CMLA is a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945. SMSF Plan is part of CommInsure Protection. The Product Disclosure Statement (PDS) of CommInsure Protection is issued by CMLA.  

The information above may include general advice but doesn’t take into account the investment objectives, financial situation and needs of any particular individual or trustee of a self-managed super fund. You should assess with the help of legal, financial and taxation advice, whether the information is appropriate in light of your own circumstances before acting on it.