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Your family might not receive your death benefits

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A life policy or a funeral benefit is paid to whomever you have nominated on your policy documents. Problems arise when policyholders forget to update their policies, for example, after a marriage or divorce. Photo: iStock
A life policy or a funeral benefit is paid to whomever you have nominated on your policy documents. Problems arise when policyholders forget to update their policies, for example, after a marriage or divorce. Photo: iStock

PERSONAL FINANCE

Most people have some form of life insurance or death benefit. This could be a policy taken out for a specific reason, or simply because they are employed or a member of a retirement fund.

How these death benefits are paid and to whom depends on the benefit and your nomination form. Many people may not realise they have these benefits or that, without specific instructions, those death benefits will not be paid to their loved ones.

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