01 / The meaning
What it means.
The term appears in different arrangements, including life insurance, some personal accident policies, superannuation and workers compensation schemes. These arrangements have different eligibility rules and recipients. An accidental death benefit is narrower than a benefit that responds to death from a wider range of causes. A policyholder, insured person and beneficiary may be three different people.
For a business owner, distinguish family financial support from money intended for a business purpose, such as a succession arrangement. Ownership, beneficiary nominations and any superannuation rules affect who can receive money. An amount mentioned in an employment contract does not itself establish insurance. Review the actual documents with an appropriately authorised adviser; this glossary does not indicate that BAU arranges life insurance.
02 / Put it in context
A practical example.
Hypothetical example: a director dies while a company accident policy is in force. The family locates the schedule, but eligibility depends on the cause of death, insured-person definition and beneficiary provisions.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify whether the benefit is accident-only or broader.
- Confirm the nominated recipient and ownership of the policy.
- Check exclusions, evidence requirements and any nomination expiry.
04 / Start a useful conversation
A question for your broker.
Who would receive this benefit, and which deaths fall within the specific arrangement?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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