SMSF Income Protection Insurance
Group Life Insurance through your Superannuation Fund
SMSF Income Protection Insurance offers your members the assurance of a regular, ongoing income if they are unable to work due to illness or injury.
Our SMSF Income Protection Insurance is designed to safeguard your lifestyle and protect your financial stability if you’re unable to work due to illness or injury. It provides a regular monthly income, ensuring your financial obligations are covered while you focus on recovery.
This cover is part of our SMSF Group Life Insurance Master Plan and is tailored specifically for Australians managing their own super funds. It’s an essential layer of protection that gives peace of mind to trustees and members alike.
Comprehensive Income Protection for SMSF Members
Income Protection (IP) cover under the SMSF Master Insurance Plan pays a monthly benefit if you become Totally or Partially Disabled because of sickness or injury and, as a result, are unable to work and earn your usual income.
Under our group plan, you can apply for up to $30,000 per month in income protection benefits.
Although this cover is linked to your SMSF life insurance policy, it is held outside your superannuation to ensure fast and uncomplicated access to payments when you need them most.
To qualify for income protection, each SMSF member must:
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Be aged between 15 and 64
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Hold at least $50,000 of death cover within the SMSF
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Be employed for at least 15 hours per week
Your Income When You Need It Most
When illness or injury stops you from earning, our SMSF income replacement insurance steps in.
It provides a monthly payment of up to 84% of your income, including a 9% superannuation contribution, so you can continue meeting expenses such as:
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Mortgage or rent repayments
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Daily living costs and bills
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Medical treatment and recovery costs
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Support for your dependants and family
This means you can maintain financial stability and avoid dipping into your savings or retirement funds during recovery.
Built-In Premium Waiver for Extra Peace of Mind
While you’re receiving payments under your Income Protection policy, your premiums for associated Life and TPD insurance may be waived automatically.
This built-in premium waiver benefit ensures you stay covered without extra financial strain while you’re unable to work.
A built-in benefit of our income protection cover is our ‘premium waiver’ clause, which means that while you are receiving payments under your income protection policy, you may not be required to pay premiums on your related death cover and TPD insurance.
Who can apply for SMSF Income Protection?
To be eligible for Income Protection (Basic or Plus Options), you must:
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be aged 15–64 at the time of application (entry age)
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have a Cover Expiry Age for Income Protection of 65
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be Gainfully Employed and working a minimum of 15 hours per week
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be an Australian Resident or an eligible visa holder (such as certain New Zealand citizens with a Special Category Visa)
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be a member of an SMSF participating in the Plan, with at least Death cover already in place within the fund.
For non-superannuation cover, such as Income Protection, you (as the insured member) are responsible for paying premiums, and you receive any claim payments directly.
Flexible Cover Options to Suit Every Member
We understand that flexibility matters when it comes to SMSF insurance.
Our Income Protection Insurance allows each member to choose their preferred:
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Waiting period: 30, 60, or 90 days
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Benefit period: 2 years, 5 years, or up to age 65
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Cover type: Basic or Plus
The Plus option offers enhanced benefits, including:
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Assistance with travel costs if you fall ill or are injured overseas
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Contributions towards the cost of a professional carer or family member providing full-time care
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Extended recovery support and rehabilitation benefits
Every member can tailor their cover to their unique circumstances, income, and financial commitments.
The Value of Income Protection Inside Your SMSF
Income protection is one of the most important safeguards a working Australian can have.
Holding it in conjunction with your SMSF Life and TPD Insurance gives you:
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Simplified management of all your protection needs
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Access to group rates for better value
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Tax-effective premium payment structures
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Streamlined claims and benefit access
Why Choose SMSF Insurance for Income Protection?
We specialise in insurance solutions built exclusively for SMSF trustees and members.
With years of experience in the Australian SMSF sector, we make insurance simple, compliant, and efficient.
You’ll benefit from:
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Tailored plans for SMSF structures
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Fast and simple online applications
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Competitive group pricing
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Australian-based service and claims support
Each member of your SMSF can apply for the amount and level of income protection cover that best suits their needs, and select their own waiting and benefit period options.
Frequently Asked Questions
1. How does SMSF income protection insurance work?
It provides monthly income if you can’t work due to illness or injury. Payments continue until you recover or reach your chosen benefit period limit.
2. Can SMSF income protection premiums be tax deductible?
Since this cover is held outside your SMSF as a linked policy, premiums are generally tax deductible to the individual, not the fund. We recommend checking with your accountant or tax adviser.
3. What’s the difference between Basic and Plus cover?
Plus cover includes additional benefits such as travel assistance, carer support, and extended rehabilitation cover.
4. Can I choose how long I receive payments for?
Yes. You can select a benefit period of 2 years, 5 years, or up to age 65, depending on your policy.
5. Do I need to have life cover in my SMSF to apply?
Yes. Under the Plan, Death cover within the SMSF is a minimum requirement before any other type of cover (including Income Protection) can be taken out.
6. How much SMSF Income Protection can I apply for?
You can apply for a Monthly Benefit up to 75% of your monthly income, including an optional Superannuation Contributions Benefit, to a maximum of $30,000 per month (inclusive of SC Benefit).
7. What is the difference between Total Disability and Total & Permanent Disablement (TPD)?
Total Disability (Income Protection) relates to your inability to work due to sickness or injury, either in your usual occupation or in any suitable occupation, depending on your prior work hours, and is assessed month by month.
Total & Permanent Disablement (TPD) (on the separate TPD cover) generally refers to a condition where it is unlikely you will ever work again (subject to the TPD definition that applies).
8. How long will my Income Protection benefits be paid?
Benefits are payable while you continue to meet the Total or Partial Disability definitions, up to the Benefit Period you selected (2 years, 5 years or to age 65) and subject to the overall Cover Expiry Age of 65 for Income Protection.
9. Who pays the premiums for Income Protection – me or my SMSF?
Income Protection under the SMSF Master Insurance Plan is non-superannuation cover, so you as the member are responsible for premiums, and any claim is paid directly to you. Your accountant or adviser can help you understand the tax treatment of these premiums and benefits.
Get Started Now
Protect your income and your peace of mind with SMSF Income Protection Insurance designed exclusively for self-managed super funds. Apply online today to get a personalised quote and start securing your future.
Quotes for SMSF Life Insurance are instant, and you can buy SMSF Life cover securely online.
