An SMSF specialist has suggested a split total and permanent disablement insurance policy can allow cover to be held in the fund while ensuring policy definitions not allowable under super law are contained in it.

Any transfers of risk insurance from an individual to an SMSF must be legitimate due to the severity of penalties resulting from breaches related to these transactions.

SMSF members paying life insurance premiums from their fund may lose its benefits if they don’t fully consider which fund account will provide the payments.