These are 2 other insurance policies that can be paid with your super funds.  Until September 2007, most super funds only allowed Income Protection premiums to be paid if the benefit period was 2 years.  Changes in legislation now mean that Temporary Disability (Income Protection) premiums for benefits to age 65 can be funded through superannuation.

Advantages:

a.  Access your superannuation funds to pay essential bills now if cash flow is tight;

b.  Total and Permanent Disability insurance premiums may be tax deductible when structured through superannuation (Similar to life insurance in chapter 1 above).

Disadvantages:

c.  Income Protection insurance premiums are tax deductible anyway.  This means that you can reduce your taxable income by paying the Income Protection premiums with your personal income ie not using superannuation;

d.  Accessing your superannuation now will compromise the amount you have left in retirement;

e.  Tax may be payable on any Total and Permanent Disability benefits.