What it does: Pays a lump sum to your beneficiary when you die or
are diagnosed with a terminal illness with less than 24 months to
live.
How much it delivers: You need to assess your income, age,
health and family situation before determining what an appropriate
payout would be. This may be used to pay off a mortgage, cover
children’s education, provide an income for your spouse, cover
funeral expenses and pay down any other debts.
How you pay for it: By annual or monthly premium to an insurance
company. This can also be paid by your superannuation policy.
When it’s claimed: Your beneficiaries claim when you die, and
sometimes it can be claimed if you’re diagnosed with a terminal
illness, with less than 24 months to live.
