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Insurance Planning

Insurance Overview

Life insurance

Life insurance (death cover) provides a payment on a person’s death. When the insured person dies, a lump sum is paid to the owner of the policy. If the person who is the life insured is the policy owner, the money will be paid to either a nominated beneficiary or to the estate if no beneficiary is nominated.

The owner of the policy could be yourself, your spouse, a business partner or a super fund or other entity.

Who is the most appropriate owner depends on your reason for taking out the insurance and your family circumstances. Speak with your professional adviser for guidance.

The amount of life insurance you apply for can cover:

  • money to repay outstanding debts, such as a mortgage 
  • a lump sum to generate income needed for a dependant family for a certain number of years
  • any additional amount you wish to have paid out as part of an estate plan for your beneficiaries, and
  • funeral costs.
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