Trauma Insurance Policies and SMSFs

The Commissioner has provided his preliminary views on whether a trustee of a self-managed superannuation fund (SMSF) can purchase a trauma insurance policy for a member without contravening the superannuation legislation.

The Commissioner says a trustee will not contravene the superannuation legislation provided:

•    any benefits payable under a policy:

−    are required to be paid to the trustee;

−    will become part of the assets of the SMSF until the relevant member satisfies a condition of release; and

•    the acquisition of the policy is not made to secure some other benefit for another person.