Term Life
Death cover leaves your beneficiary (ies) a lump sum to help cater for their financial well-being. This will give you the peace of mind of knowing that those who depend on you will not be financially disadvantaged with the burden of maintaining living standards or making loan repayments.
Term life provides a lump sum on the death of the life insured to the policyholder (with some restrictions as set out in the PDS). For cover outside of superannuation, if the policyholder is the life insured then the benefit is paid to:
- the deceased’s estate or
- a nominated beneficiary (subject to policy terms) without the need for probate, or
- Another person can own the policy and be paid the benefit.
If the life insured is diagnosed as terminally ill then payment of up to a percentage of the lump sum can be made prior to death, subject to limitations stipulated by the policy document.
Life insurance depends on your individual circumstances. As a general rule you should aim to have enough cover to pay all large debts and provide your family or other dependants with a lump sum that can be invested to earn an income to replace your lost earnings.