As SMSF trustee, superannuation law says as part of preparing the investment strategy for your fund you're required to consider whether to hold insurance cover for each member in your SMSF. You are not required to take out life insurance cover for the members of your SMSF, but you must consider it. Generally, your SMSF can provide insurance for members for an event that meets a conditions of release including death, terminal medical condition, permanent incapacity and temporary incapacity.