When my husband died he had life insurance with his super fund, what happens with the super and life insurance

Question

Are the two amounts paid seperately or as one sum? As two amounts are shown on the letter sent to me as xamount of super and xamount of insurance.

Answer 1

I can only answer from experience here in Australia. A friend  whose husband died received two separate payments some time apart. The super was paid first, followed by the life insurance. It took about three months for it to be finalsied, however I believe all cases would be different. I would suggest you ask the super fund involved. There should be a contact number on the letter you received. They are there to help you.

I am sorry for your loss.

Answer 2

Sorry for the loss of your loved one.

I think you may be saying that your husband's life insurance policy is a Universal Life, with a cash accumulation.

If that's so, a UL has two types of plans; Plan A, and Plan B.

Plan A would be the policy face amount of death benefit, which INCLUDES the cash accumulation, up to a certain percentage of the face amount. If the cash accumulation goes beyond that percentage, it creates a corridor, which increases the death benefit.

Plan B would be the face amount, PLUS the cash accumulation. The actual costs are a little higher for this plan than for plan A, because the death benefit would be greater, assuming the face amounts in both plans are the same.

It could also be a term with a deposit or annuity rider.

The policy could also be a variable product, which is outside of my area of expertise.

The best thing to do is call the agent or the company and have them explain the complete policy to you.

Best wishes, and God bless.