What Is a Death Benefit and Who Can Claim It?
A lump-sum payment not subject to income tax, death benefits occupy an unusual space in the insurance sector.
“Death benefit” is a term that is associated with life insurance. In Australia, It is a part of every individual’s superannuation policy and comes into effect only when he or she dies before receiving the benefits of this policy. All superannuation funds in Australia are required by law to include this type of insurance. The death of a loved one in the family can be emotionally and also financially draining if he or she was the main breadwinner in the family. This article aims to make clear the concept of the death benefit and who can claim it.
How can you Make a Death Benefits Claim?
If you are the spouse, a dependent child, or a parent of the deceased in your family, it will likely be a period of grief full of financial and emotional stress for you. If you were partially or fully dependent upon the deceased for financial support, you are eligible to make a death benefits claim. The fund has to pay death benefits along with the lump sum that was assured to the dependent of the deceased contributing to the super. If you are a family member who was dependent upon the deceased, you are eligible to claim the death benefits. No matter what superannuation policy the deceased was contributing to, you can rest assured that it must have death benefits for their dependents. You can take the help of death benefits lawyers to get this money from the operators of the fund. In most cases, these benefits run into thousands of dollars.
Factors Deciding The Amount of Payment
In many cases of the death of the main breadwinner of the family, the government of Australia comes forward to help the bereaved family without even requesting help. This help is provided through Services Australia, an executive agency responsible for looking after the health and welfare of the Australian people. Besides temporary exemptions in many schemes, Services Australia also gives away the death benefits to the bereaved family. The amount of money given is dependent upon the following factors:
- The unique circumstances of the family;
- The relationship of the family member with the deceased;
- The time after the death taken to inform the government.
Who is Considered a Dependent Under Death Benefits
Death benefits under federal laws can only be given to a deceased person’s dependents. In case of no dependent, they are given to a legal personal representative (LPR). A non-dependent can receive death benefits only through an LPR. In such a scenario, it becomes important to know who is considered a dependent in case of deciding who is going to be the recipient of the death benefits:
- The spouse, or the former spouse of the deceased;
- The non-adult child of the deceased;
- Any other individual who was dependent upon the deceased just before his or her death.
If you are a dependent of the deceased in your family, you must take timely action to receive death benefits. If you are not approached by services Australia, you need to contact a qualified death benefits lawyer to get some monetary help through the super of the deceased. Claiming an experienced lawyer is the best way of receiving death benefits.
