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Compared with other kinds of insurance, life insurance plans are pretty simple – if the insured person passes away or is terminally ill, the insurer will pay the insured amount. However there are a few additional benefits that most good life insurance plans have – we’ll take a look at a couple of common ones: Funeral Grant – Often it can take a little time for the insurer to pay out the full life insurance lump sum (for example there usually need to be a death certificate produced). In order to help the surviving family members with immediate costs (like a funeral, estate advice, travel for family members etc), most insurers will make an immediate Funeral Grant (often of around $10,000). Special Events Benefit – The way this works is simple. Usually any increase to your insurance requires an application to be completed. The insurer will assess the new application, and then increase the insurance following this assessment. And if your health has worsened since you initially took out your life insurance, the insurer might refuse the increase, or might only allow you to increase your life insurance if you pay a higher than usual premium. However, if you have a Special Events Benefit on your policy, and experience one of the ‘special events’ (having a child or taking out a mortgage for example), you can increase your insurance without completing an application. This means you guaranteed to be able to increase your cover even if your health has gotten worse. Financial Advice Benefit – dealing with a life insurance lump sum can be difficult. To help with this, some insurers provide a grant (in addition to the life insurance lump sum) to reimburse the cost of getting qualified financial advice. This means that the surviving family can get assistance and manage the lump sum in the best possible way – reducing stress at a very difficult time.
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