Life insurance pays a lump-sum benefit upon death or upon a diagnosed terminal illness where the employee has a life expectancy of 12 months or less.
The money paid out from a life insurance claim to an employee’s estate can be used however it’s needed. For example, It could assist in paying off the mortgage, student loan, credit debt, medical expenses or provide a safety net for loved one’s who may be relying on your ongoing financial support.
Another great benefit of life insurance is for business protection when not paid out directly to the employees estate. It can provide funds to ensure the business has options moving forward to replace an employee as a key person or take the time to think about a new strategy moving forward.
REAL LIFE COVER EXAMPLE
Jeremy was the financial controller at a large multinational firm. He was a young and dynamic individual who had a bright career ahead of him. He earnt $200,000 a year, was recently married and had a young child on the way. One afternoon Jeremy fainted in the office which led to his co-workers calling an ambulance and rushing him off to hospital. Jeremy was then diagnosed with a rare form of brain cancer, unfortunately in his case it was inoperable, and Jeremy died in hospital 3 months later.
Luckily for Jeremy, his employer had a group life insurance cover available which provided a lump sum benefit to Jeremy’s family of $600,000. This allowed Jeremy’s wife to pay off their mortgage and outstanding debt, and even place a small amount aside for their new born’s University fund. The emotional strain of losing a family member is unbearable, but having life insurance will always offer some peace of mind for your loved ones. As Jeremy passed away, he died with the comfort of knowing that his wife and child had financial security due to the cover that his employer had arranged with Mercer Marsh Benefits.
Disclaimer: The information contained in this website provides only a general overview of subjects covered, is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Insureds should consult their insurance and legal advisors regarding specific coverage issues. All insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies. Marsh cannot provide any assurance that insurance can be obtained for any particular client or for any particular risk.