SMSF practitioners should encourage trustees to make explicit decisions around life insurance, rather than just give it consideration, and then document those decisions.

SMSF trustees who have insured fund assets in their own name will be unlikely to be able to return insurance payments to their fund due to cap limits, an auditor has warned.

A gap in employment can reduce an income protection payment to zero if the policy is held within an SMSF at time of claim, an insurance expert has warned.