Can I hold trauma insurance inside my superannuation fund?

No, trauma insurance generally cannot be held inside superannuation for policies taken out after July 1, 2014. Unlike life insurance and TPD insurance, which can be owned through your super fund, trauma insurance must be purchased as a standalone policy outside of super. This applies to new trauma policies; however, some grandfathered policies taken out before July 1, 2014, may still exist within super funds. The prohibition on holding trauma insurance in super is due to superannuation regulations that restrict the types of insurance benefits super funds can provide. Since trauma insurance can pay out while you're still working and earning income, and doesn't require you to meet conditions of release for accessing super, it doesn't align with super's purpose of providing retirement income. Trauma insurance must therefore be purchased either directly from an insurance company or through an insurance broker or financial adviser, with premiums paid from your after-tax income. While this means you can't use before-tax super contributions to pay premiums (unlike life and TPD inside super), it also means you have direct access to any payout without needing to meet super preservation rules, and the premiums won't erode your retirement savings.