Tax deductibility of TPD premiums depends on how the policy is structured. For TPD insurance held inside your superannuation fund, the fund can claim a tax deduction on premiums paid, effectively giving you a tax benefit. If you make concessional (pre-tax) contributions to pay for insurance in super, you can claim those contributions as a tax deduction at your marginal tax rate. For example, a $1,000 premium in super only requires a $1,000 concessional contribution, which is taxed at just 15% in the fund rather than your marginal rate. However, for TPD insurance policies held outside superannuation, premiums are not tax-deductible to individuals. Someone on the highest marginal tax rate (47%) would need to earn $1,886.79 to afford a $1,000 premium after tax. Some insurance-only super funds offer an upfront 15% premium rebate on rollovers, representing the tax concession the fund trustee receives. While outside super premiums aren't deductible, the trade-off is that benefit payments are typically tax-free.