Insurance 101
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Insurance 101

The whole point of life insurance is to look after your family financially if you’re not around anymore. But did you know that life cover can pay out when you’re still alive? In fact, there are two circumstances that could pay a lump sum to you before you die.

You might also have heard that, even after your death, your family will have to find money for funeral costs while they wait for the lump sum payout from life cover. However, if you choose the right insurer, funeral expenses won’t be problem for your family. It means you don’t need to worry about getting separate funeral insurance.

For answers to the big question ‘when do life insurance policies pay out?’, keep reading:

3. It pays 30% of the lump sum if you get one of these

Now things get really interesting. People who don’t have Fidelity Life cover get a surprise when they find out about this benefit: If you are diagnosed with one of the specified terminal illness conditions below, you can apply to receive 30% of your lump sum up to a maximum of $250,000. This is called ‘terminal illness partial benefit’ and it applies to: 

  • Motor Neurone Disease
  • Stage 3 or 4 Exocrine Pancreatic Cancer
  • Stage 4 non-small cell lung cancer
  • Stage 4 Distal Oesophageal Cancer
  • Stage 4 Liver Cancer
  • Stage 4 Stomach Cancer
  • Class 4 Congestive Heart Failure that is unresponsive to treatment

The remainder of the lump sum is paid out as a death claim.