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Holding insurance through your superannuation

Holding insurance through superannuation may provide a number of potential benefits:

  • Insurance premiums are generally tax deductible to your superannuation fund
  • You may be eligible to make contributions into superannuation that reduce your taxable income. These are known as concessional contributions
  • As premiums are deducted from your superannuation fund and not from your own pocket, insurance cover may be more affordable.

However when considering whether to hold insurance through superannuation, you should also be aware that:

  • Not all types of insurance cover are available within superannuation
  • Tax may be payable on benefits paid from superannuation - this will depend on the type of payment and the person who receives the benefit
  • Your options for nominating a beneficiary will be limited to superannuation dependants1 or your estate.

When deciding whether you should hold your insurance inside or outside superannuation, there are a number of things to consider:

  • Your age
  • Financial circumstances
  • The type of insurance you need
  • Your intended beneficiaries.

A financial planner can help you decide on whether holding and paying for your insurance through superannuation is right for you.

Things you should know

1. A superannuation dependant includes your spouse (legally married or de facto including same sex), your child and any person with whom you have an interdependency relationship.

This information does not take into account your personal circumstances. Before making a decision about a particular insurance product, read the relevant Product Disclosure Statements to see if it's right for you.