Life Insurance is designed to provide financial support when your family or loved ones need it most providing them the financial freedom to make choices about their future.
What does it do?
Life insurance will pay a lump sum benefit on the death of the life insured. It can either be paid to the insured person’s estate, or beneficiaries can be nominated and the benefit would then be distributed as per your instructions. This benefit allows your family and dependants to be financially secure allowing their lifestyle to continue when you’re not there.
What is the Benefit?
The benefit is a lump sum payment made by the insurer to the beneficiary of the life insured’s policy on the death of the life insured. Policies will also allow for payment to the life insured on Terminal Illness, where an illness is likely to cause the death of the life insured within 12 months.
How much life Insurance do I need?
This will vary from person to person depending on their individual circumstances. Factors that help determine the required sum insured include level of debt, future financial requirements, future education funding and any specific estate planning requests that you may have. The final sum insured will allow you the peace of mind knowing that if something unforseen happens, you have provided a financial backstop for your family’s future.
How does the policy work?
The policy pays a lump sum on the death of the life insured. Insurers offer various options that can be included on your policy such as Terminal illness Benefit, Financial Planning benefit and some offer to advance a portion of the payment while to help with initial costs until everything is settled. Make sure to look at the available options and see what best fits your needs.
Where to from here?
Following discussions with your adviser, they will make written recommendations outlining the policies and sum insured required to meet your current circumstances. A personal medical statement is normally all that is required to have the application process started, however, sometimes depending on your medical history, blood tests or an appointment with a medical appointment may be required. From there, your advisor will liaise with you through to the insurer issuing your policy documents.
What happens if a claim is made?
In the event a claim is made, your adviser will try and make the process as simple as possible for you. Claim forms will need to be completed, identification documents and medical records and doctor’s report will need to be obtained and your adviser will help with this and liaise with the insurer. The insurer has a dedicated claims team, and a claims assessor will be allocated to help you through this process.