For many of my clients, life insurance is the first type of personal protection they consider – usually when purchasing a property or starting a family. If you provide financially for members of your family – either children, siblings or parents – it’s likely that term life insurance will form a key part of your Personal Protection Plan.

It’s also likely that you’ll want your dependents to have access to insurance monies as soon as possible; after all, bills still have to be paid even if you’re not here.

To speed up the payment of insurance benefits, consideration should be given to the use of binding death benefit nominations if the life insurance policy is held within superannuation. AMP’s claims experience indicates that using a binding death benefit nomination instead of a non-binding nomination on average reduces the time taken to settle the claim by 60 per cent.

A valid binding death benefit nomination can also be useful in reducing the likelihood of protracted legal disputes over the proceeds of a will.

There are restrictions on who you can nominate as beneficiary of a binding death benefit nomination, and there may be tax implications so it’s important you talk to your financial adviser or contact Suggars & Associates to ensure your life insurance is structured in the most effective manner for your personal situation.

The advice in this article is of a general nature only and does not take your personal circumstances into account. You should seek financial advice before making any investment or financial decisions

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