Frequently Asked Questions - Claims

What happens to unclaimed life insurance money?

In rare situations, sometimes life insurance benefits could be left unclaimed after a policyholder passes away. In this circumstance, your insurance provider will pass the funds to the Australian Securities and Investments Commission (ASIC). This generally only happens if the life insurance payout has not been claimed within seven years of it reaching maturity.

Can a life insurance company deny a claim?

The majority of life insurance claims are paid. However, there are some instances where your claim could be denied. It’s important to understand your duty of disclosure and to familiarise yourself with the Terms and Conditions of your policy, as listed in your Product Disclosure Statement. If your claim is delayed, this is often due to necessary documents needing to be submitted to your insurer. One reason a life insurance claim could be potentially denied is due to non-disclosure of required information by the Policy Holder or claiming for an event that the policy did not cover.

Can I claim life insurance on my tax return?

We understand that tax implications are an important issue as you get older, to avoid unnecessary costs. Life insurance premiums are usually not tax deductible in Australia, but the good news is that any payout or benefits you receive from your policy won’t be taxed. For more information on this, read is life insurance tax deductible.

Is there a time limit on claiming life insurance?

To ensure that your claim is properly assessed in a reasonable timeframe, it’s important that a claim is made as soon as possible after the event that gives rise to it. Before a claim can be assessed, Australian Seniors needs to receive certain forms and documents.  

It’s important to read your Product Disclosure Statement to fully understand your rights and responsibilities when claiming to give you the peace of mind that your life insurance policy is intended to give. Read more about how to claim.

Can you claim on two life insurance policies?

Yes, you can claim on multiple life insurance policies as long as you have paid your premiums and have met your obligations with each provider, and some older Australians find that this is a suitable option for their needs. There may be further considerations when claiming on more than one life insurance policy when they are both held with the same insurer as there are likely to be limits on how much you can claim based on the insured’s age and the total cover amount offered by the insurer, so it’s important to check the terms carefully. Read the relevant Product Disclosure Statement/s and speak to a financial advisor for more information. 

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For total peace of mind for your entire family, call our friendly team now. We’re here between 8am and 8pm Monday to Friday on 1300 050 510. You can also request a call-back at a time that suits you.