Facts about Life Insurance in Australia

Life insurance plans

Life insurance plans will pay 1 lump sum compensation payment to the chosen beneficiaries of the estate of the policy holder when he or she passes away due to reasons such as natural death or an accident.

Lump sum payment

The lump sum payment that will be received by the beneficiaries of the life cover will depend largely on the insured amount along with the cause of death. Certain other factors such as exclusions and eligibility criteria may influence the insurer’s decision to pay the compensation payment.

Life insurance usually do not pay for funeral expenses unless the insurer has offered to provide an advance payment from the lump sum compensation amount for the life cover. This advance payment may be given a day or two after the claim is filed, the final payment will be given when the claim is approved. Certain comprehensive life covers include funeral expenses insurance which ensures that the policy holder doesn’t have to opt for additional insurance plans.

Buyers who want to opt for a life cover that offers a funeral expenses benefit have various options, out of which opting for an add on funeral expenses plan is one of the most preferred options for buyers who have dependants.

 

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