Life Cover for SMSF

A Self-Managed Super Fund (SMSF) is a private superannuation fund that members can manage themselves, giving them control over how their super is invested. SMSFs can have between one and six members.

Yes, for the SMSF to pay your life insurance premiums they must be the legal owner of the policy. And while premium payments could be tax free, they will come directly out of the fund, eroding the balance over time.

There are a few important things to be aware of, when choosing the cover that is right for you. Life insurance through super may have general exclusions, and insurance premiums are paid from the fund which means that they can affect your retirement balance. Tax may also be payable on Life and TPD benefits under super. As well as this, life insurance through SMSF typically only covers core benefits, with ancillary benefits such as advance funeral payments being unavailable. Take these factors into account when selecting the best option for your needs.

Life insurance is often included when you start a new industry or retail super fund, with premiums being deducted directly from the balance. To make sure you have an adequate amount of cover, contact your fund.

If you change SMSF providers or restructure your fund, it's important to let your insurer know. Your Real Life Cover for SMSF can continue as long as your SMSF remains active and continues to own the policy.

Real Life Cover for SMSF is only available while your policy is owned by an active Self-Managed Super Fund. If you leave or close your SMSF, your policy will generally end. Depending on your circumstances, you may be able to apply for a new life insurance policy outside your SMSF.

You can claim from the date of the life insured’s death or Terminal Illness diagnosis.

Step 1

You or another trustee of your fund can simply call us on 1300 307 297.

Or

Email claims@reallifecover.com.au to let us know that you will be lodging a claim.

Step 2

A dedicated claims agent will be assigned to your claim and will contact you to take you through the claims process.

Step 3

Complete all forms provided by your claims agent or simply download the most appropriate form below. Send the completed form(s) along with all required documentation to:

Real Insurance
Reply Paid 6728
Baulkham Hills NSW 2153

• Life Cover for SMSF Insurance (including Accidental Death Cover) Claim Form
• Life Cover for SMSF (Total Permanent Disability) Claim Form
• Life Cover for SMSF Terminal Illness Claim Form

Step 4

Once completed documents are received, we’ll assess the claim and pay, subject to approval, without unnecessary delay.

Once we receive all the completed documentation we have asked for, your claim will be submitted to Hannover (the insurer) to be assessed. We will call you as soon as there is an update or within 10 business days of receiving your forms and every 10 business days thereafter to keep you informed of how your claim is progressing.

If your claim is approved, your payment will be made to the fund without delay. In some cases, your claim will need to be further assessed, and you may need to provide additional information from your medical practitioner. Your Australian based, dedicated claims specialist will help guide you through the process.

A cheque will be drawn payable to the ‘trustee’ of your fund.

No. With Real Life Cover for SMSF, any insurance payout is made to the trustee of your Self-Managed Super Fund, not directly to your beneficiary. The trustee is responsible for distributing the benefit in line with superannuation laws and your SMSF's trust deed.