It depends on the type of cover and who owns it. Income protection premiums you pay personally are generally tax deductible, but the benefits are taxable income. Trauma insurance can't be held in super; its premiums aren't deductible, and payouts are generally tax-free. Premiums for cover held inside super are paid by your super fund, which claims the deduction.

In this short video, McKern financial adviser Kristian Tangan runs through how tax works for insurance held in super, trauma cover and income protection.

In this video

0:14 Super and premiums

0:20 Trauma insurance

0:34 Income protection

General information only, not personal advice.