Many superannuation funds offer personal insurance options to their members that are held inside super, including:

• Life (or ‘Death’) cover;
• Total & Permanent Disablement Insurance (TPD); and
• Income Protection (or ‘Salary Continuance’) cover.

These insurances are explained in further detail in the Insurance Planning module.

A benefit of holding insurance within your super fund is that the premiums for these types of insurance may be tax deductible to the super fund thereby reducing the cost of the insurance for the member. Life and TPD insurance are generally not tax deductible to the member if taken outside of super..

Note that income protection insurance is tax deductible if taken inside or outside super by the member, so it is important to review the after tax costs and benefits of both options.