Death Benefits Support The People Left Behind
Death benefits are a type of insurance that are paid to the people who you leave behind when you die. Many people think about taking out death benefits if they have people who are financially dependent on them like children, a partner or elderly parents so that they know they’ll be looked after if you die.
There are several different ways to you can claim a death benefit. This will depend on your nationality, who you worked for or what type of insurance you have. Depending on all of these factors, a death benefit may be paid out by an insurance company or a government agency.
A death benefit may be included in your superannuation, business insurance, home and contents insurance, motor vehicle accident insurance, income protection insurance, travel insurance or accident insurance.
Death benefits can be paid out in several ways including as a periodic payment or a lump sum. A periodic payment is also called an annuity and is usually paid once a month. Usually, you can choose how you want to receive your benefit at the time you take out your death benefits plan.
If someone close to you has died and you’re eligible to receive a death benefit, it’s important to understand how that payment may affect you personally. In some circumstances, you may have to pay tax on the amount received which is why it’s also a good idea to speak to an accountant so that you can structure your payments in a way that’s best for you.