I agree with ejd.I understand the 'Investment Strategy' needs to...

I agree with ejd.

I understand the 'Investment Strategy' needs to include a consideration of insurance cover for the members. I would think if your Accountant is misinterpreted it then they may be swimming in the SMSF pool with their floaties on. Only maybe.

As for NW's statement:
It is not practical to hold income insurance inside your superannuation
fund because many of the reasons you would be able to make a claim on your income insurance policy do
not satisfy a condition of release from the superannuation fund so even though the insurance company pays
up to the superannuation fund you may not be able to access this amount until you are over 55 years of age!

My understanding (mine only of course, your Honour) is that temporary incapacity meets a condition of release as an ancillary benefit but can only pay out up to current earnings and from insurance proceeds. Any extras such as rehab benefits etc can't be paid out. In other words, Income Protection policies generally pay out if you are not going to work (or less than you were) which could meet the temporary condition of release. Assuming the Trust Deed allowed it, of course. Only my view, not any form of advice or recommendation....