From www.smsfadviser.com: A lesser-known benefit of SMSFs can enable significant life insurance deductions.

The Future Service Benefit under Section 295-470 of the Income Tax Assessment Act allows eligible SMSFs to claim deductions based on the total benefit paid, potentially exceeding $500,000.

Strict eligibility rules apply, including the requirement that premiums must be paid in the year of an employment termination event, and claims can be complicated if the beneficiary is not a tax-dependent individual.