If you have life insurance and you die or are diagnosed with a terminal illness, your insurance provider will need to be informed in order for your survivors to receive a pay-out. It is a good idea to inform a close relative or friend that you have taken out life insurance, and ask them to contact your insurance provider when the time comes. They will need to provide the insurance company with proof that you are a policyholder, details of the policy and your death certificate or confirmation of the terminal illness diagnosis.
To speed up the claims process ensure that any required forms are filled out correctly, and any relevant information has been included. It is recommended that these documents are sent by recorded or registered delivery, because you will need to send original copies and will not be able to claim if these are lost in the post. The insurance company will be able to advise your survivors how long the process should take and when they will receive their money, see also claims time frame. The current Intestacy Rules in Australia determine the chain of inheritance after you die: if you have not written a Last Will and Testament these rules will dictate who is entitled to receive your life insurance benefit.
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