Life Insurance Claims

Learn how to prepare for a life insurance claim and avoid any hassles down the track

For anyone who wants to benefit from the peace of mind of having financial security for their loved ones, having adequate life insurance in place in essential. Life insurance can provide your family with the financial protection that they will need in the event that you are no longer around to support them. Life insurance will pay out a lump sum benefit that your financial dependents can then use to meet any ongoing living expenses and outstanding debts.

It is also important for anyone who take out life insurance cover to make sure that their next of kin or beneficiaries are familiar with the claims procedure and what documentation is required when making a claim. This will ensure there is no delay in the claim being paid and that it is received by the appropriate beneficiaries.

Read finder's consumer guide to claiming and finding quality cover

Steps to a successful claim

Life Insurance Claims Process Diagram

Making a claim on a life insurance policy is not necessarily a complicated procedure but it can be time consuming if the appropriate steps are not taken. Bear in mind that the claims procedure may differ from one provider to the other. However, you can manage this process more efficiently by taking some key considerations into account when making a life insurance claim. These include:

  • Check the life insurance policy documentation: Life insurance policies and procedures can vary between providers, so before you do anything else relating to the life insurance plan, you need to check the policy document carefully. This is to make sure that you are aware of the process that you need to go through and that you have all of the relevant information that the provider is likely to ask for on hand. Have a clear understanding of the claims procedure when you first apply for the policy and store all the necessary documentation in a safe place.
  • Contact the insurance provider as soon as possible: to notify them of your intention to claim. While there may be a lot of other things going on in your life that you need to get sorted, it is critical to begin organising the claim as soon as possible to ensure the payment runs smoothly.
  • Keep a detailed record of your calls and contact: Because life insurance claims can take a considerable amount of time to process, it is all too easy to forget details that may prove important later on during the claim process. You may have to contact the life insurance provider on a number of occasions by phone, in writing, by email etc. Make sure that you keep notes of when you made contact, names of people you spoke to, copies of any letters and correspondence that you send in, etc. Keep all of these in a safe place so that you know exactly where to go should you need to refer back to them.
  • Be organised and get all the required documents ready as soon as you can to start lodging in your claim: The insurance provider will require different types of documentation and they are normally specified in the policy documentation, but you can also contact the provider for verification. This can include things such as a copy of the death certificate and details about the policyholder’s doctor/surgeon. Being organised is absolutely essential or you experience delays in receiving your benefits.

Some key questions you might have about submitting a claim

Life Insurance Claims and Taxes

It is important to remember that life insurance benefit payout is not taxable at the time of a claim, if the nominated beneficiaries are financially dependent on you. These generally include:

  • Spouse/partner;
  • Child/ren under the age of 18;
  • Other financial dependents, such as siblings or ageing parents.

If you have nominated specific individuals as the benefactor of your life insurance policy and they are not financially dependent on you, there may be some tax implications.

Be prepared and save time when claiming life insurance

At a time of grief the last thing that most people want to be doing is getting stressed about making a life insurance claim. At the same time, for many people this is a necessity that needs to be sorted out as quickly as possible to avoid financial hardship in the short-term.

Being prepared can save a lot of time when it comes to making a claim on a life insurance policy. This preparation can mean everything from going through the claim procedure with the policyholder when the policy is first taken out to ensuring that you always know where you keep the policy documents in case you ever need to get hold of them and the policyholder is no longer around. Simple things like these can help you to save time and hassle when it comes to actually making a claim on a life insurance policy making it easier to cope with the loss of a loved one.

Compare Life Insurance quotes

Please enter your full name
Please enter a valid email address
It's important to give us a valid phone number
Date of Birth
Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
By submitting this form, you agree to the privacy policy
Get quotes

Compare Life insurance quotes from these direct brands

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
Get a quote for up to $15 million in life insurance cover. Cover can be tailored to meet your personal needs.
Choice of cover options and flexible premiums to suit budget. No lock-in contracts and fast application.
Receive a discount of 10% on life insurance as a Woolworths Rewards Member. T's and C's apply.
Get flexible life insurance up to the sum of $2,000,000.
No expiry age as long as premiums are paid
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™ .
A simple life insurance product that can offer up to $1,500,000 in a lump sum payment on death or diagnosis of terminal illness.

Compare up to 4 providers

William Eve

Will is a personal finance writer for specialising in content on insurance. While he cannot give personal advice to clients, Will enjoys explaining the intricacies of different types of protective cover to help individuals and businesses find affordable cover that won't leave them underinsured.

Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question