Frequently Asked Questions

Q: Can I use my late wife's life insurance and super to pay her debts?

"My wife died recently and expressed in her will she wanted to pay her debts from her super. We also had a life insurance policy but I have been told I cannot pay off this debt with the proceeds from the policy or from the super. Why not if my wife specified to use it?"

Life insurance policy proceeds are not to be used for payment of estate debts except for funeral or testamentary expenses.

Your wife did not specify she wanted her life insurance policy to cover the debt in her will (a contrary intention), only the super. Only this contrary intention set out in the will allows the debt to be paid out the insurance.

In regards to superannuation, most funds will not be able to pay off estate debts even if expressed in the will. Check with your fund and lawyer.


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