If there is a funeral insurance policy, contact the insurer to notify them of the policy holder’s death and make the claim.

You will usually need to complete a claim form, bank account details, and a statutory declaration then you might be asked to provide certified copies of the funeral invoice, the will, the deceased’s proof of identity and your proof of identity.

Life insurance is designed to pay a lump sum to the people nominated as beneficiaries – usually the spouse or children of the deceased but can be friends, other dependants, or business partners.

Life insurance does not automatically form part of the estate.

Under ss 204 and 205 of the Life Insurance Act 1995 (Cth) and subject to the Bankruptcy Act 1966 (Cth):

• the rights and interests of a person under a life policy effected on the person's life or the life of the person's spouse or de facto partner are not available for discharge of the person's debts and
• if, on the death of a person, money becomes payable to a person's estate under a policy effected on the person's life, that money is not available for payment of the person's debts, unless the person had entered into a contract that provided expressly for the money to be so applied or had charged the money with payment of the debt, or gave an express testamentary direction signed by the person that the money be so applied.

Therefore your life insurance payout will not be available to meet your debts unless the Will expressly specifies to the contrary.

If the will maker had a testamentary trust will, the beneficiary will be the legal personal representative so that the monies can be paid to the estate and distributed through separate trusts under the terms of the will.

People named will need to make the claim (if over 18) and if no beneficiary was named the executor or administrator will need to make a claim on behalf of the estate.

Mortgage protection insurance covers the cost of regular mortgage payments if the mortgage holder develops a medical condition, loses their job or passes away.

If the deceased died in a motor vehicle accident, at work, or whilst travelling it’s likely you will already have made contact with relevant insurance agencies. Please seek advice if you require information around accessing other insurance products.