life insurance

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now
Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses, such as funeral expenses, can also be included in the benefits.
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot, and civil commotion.
Modern life insurance bears some similarity to the asset management industry and life insurers have diversified their products into retirement products such as annuities.Life-based contracts tend to fall into two major categories:

Protection policies: designed to provide a benefit, typically a lump sum payment, in the event of a specified occurrence. A common form—more common in years past—of a protection policy design is term insurance.
Investment policies: the main objective of these policies is to facilitate the growth of capital by regular or single premiums. Common forms (in the U.S.) are whole life, universal life, and variable life policies.

View More On Wikipedia.org
  1. M

    Life Insurance - Ex-Spouse claiming

    I was separated from late husband when he passed away but not divorced, we had already agreed to a financial settlement. I decided to walk away with less as the stress, threats I was receiving from him were deeply affecting my health, I decided to just settle on a lower amount. He has now passed...
  2. N

    WA Life insurance proceeds to nominated beneficiaries

    If a parent nominates their life insurance to go to a child (assume adult child), would they need to stipulate what the life insurance proceeds is to be used for? For example - Father nominates an adult child (whom is a dependent still living at home) as the beneficiary of the life insurance...
  3. A

    QLD Property Rights - Does Ex Have a Claim?

    Hi, So a long messy saga follows... 9 years ago my husband passed away & I received his full life insurance & his govsuper as a fortnightly pension. I stupidly fell into a relationship 8 months after my husband's death & I now realise I was manipulated by this man during a time when I couldn't...
  4. E

    NSW Rights of Beneficiary to a Potential Bankrupt Deceased Estate?

    Amongst others, I was named as a beneficiary in a deceased estate that had the potential to be declared bankrupt. The deceased was a sole business operator, who died in 2014 and had a lot debt, but also a substantial life insurance policy. The business also had varying (relatively minor)...
  5. T

    QLD Stepfather Wants to Sell the House - What to Do?

    My mother died on the 17 of January this year. My aunt, cousin, both grandparents and I are living in the house that they bought together over a decade ago and suddenly he's wanting to sell it. As her biological son, do I have any legal right to challenge him over his actions? As well as over...
  6. A

    NT Sister Refusing to Distribute Brother's Deceased Estate?

    Hi there and thanks in advance for any answers you may be able to help with :) Sister is the executor. Brother died over five (5) years ago. Almost half of the estate was left to her, a little over half to me. She refuses to honor brother's will, and is trying to keep every bit of his almost...
  7. B

    WA Change to life insurance

    If a husband changed the value of a wife's life insurance policy after seperation without her concentration or knowledge, would that be enough evidence to apply for an AVO?
  8. J

    QLD Divorce - Can I Claim Back Premiums from Insurance?

    I have had my wife insured for over 30 years. We divorced in 2012. I've now heard that I can't benefit from her death as we are now divorced. Is this correct? If so, can I claim back the premiums I've paid since the divorce?
  9. S

    NSW Provisions to Include When Updating Will?

    I am in the process of updating my will as I am undergoing treatment for cancer, and have had an eye opening experience being an executor of will for a deceased estate of a relative. I have one child (school age) and an Adult step-child. The step-child received a reasonable benefit when his...
  10. gayle dole

    NSW Someone Claimed Father's Life Insurance Policies?

    My husband has found out that his late father had two life insurance policies that have been cashed. Father passed away in 1983 and claim was made in 1987. We think we know who has done it just waitng for info from MLC as to the amount and if anything can be done about this. If it's a small...