Sorry to correct you Simco, but I think you will find that provision of benefits (i.e. income replacement) is a benefit that a super fund (smsf or Public Offer) can provide.
Can't provide benefits above income previously received and this means some "Extras" in IP policies such as Rehab expenses, Travel etc in the event of a claim would be paid to the fund (as policy owner) but it couldn't pay it to the member. Rather it would remain in the fund as a taxed income.
you may also find that in recent years the 2 year restriction on benefit payments by super funds has been lifted, so benefits can be paid through to age 65.
One area of trouble I have seen is someone having their super fund pay for the premiums without proper transfer of the policy. Is a tricky area that can have tax and/or compliance issues if not done right.
life insurance and tpd insurance for smsf, page-3
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