Trauma Insurance Policies and SMSF's

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.
  

For the full explanatory memorandum, please click here.