Term life insurance policies taken out through a superannuation fund where salary sacrifice contributions are arranged to fund the amount of the premium payment via the employer will:

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By arranging salary sacrifice contributions to fund the premium payment, the premiums will be tax-deductible to the employer as concessional superannuation contributions (Option B). Additionally, if the policy is paid out on death to a dependant, it will be tax-free (Option C). However, the policy premiums will still be subject to the contributions tax of 15% by the recipient superannuation fund (Option A).

Term Life Insurance Policies Taken Out Through a Superannuation Fund