Pros
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help cash flow. No out-of-pocket costs because premiums get paid from your superannuation account rather than debited from your personal account.
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premiums paid by your superannuation are generally tax deductible to the fund at a rate of 15%
Cons
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your insurance could be cancelled if your fund is below $6,000 and has been inactive for the last 16 months
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paying your premiums through your super fund may mean you have less money for when you retire
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potential lack of access to the benefits (payments are treated as superannuation moneys)
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potential taxation of death benefits, depending on to whom the benefit is paid (payment to spouse or children under age 18 is tax free)
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significant taxation of TPD benefits, particularly for younger people
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can only have Any occupation TPD policy instead of Own occupation TPD policy. However, you can pay extra premium by your income to get Own occupation TPD in some companies.
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can only have Indemnity Income Protection policy instead of Agreed Value Income Protection policy. However, you can pay extra premium by your income to get Agreed Value Income Protection policy in some companies.
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premiums are stepped premiums in a lot of cases, which will increase every year with age and will be very high in the future.