How Chubb Life's Financial and Legal Advice Benefit Can Help After a Claim
Receiving a large insurance payment can provide important financial support, but it can also bring decisions about debt, family finances, future planning and legal matters. Some Chubb Life policies include a benefit designed to help with the cost of obtaining professional advice.
Chubb Life's Financial and Legal Advice Benefit can reimburse eligible professional financial planning or legal advice costs up to $2,500 after a qualifying Life Cover Benefit or Terminal Illness Benefit claim has been paid, subject to the policy conditions and time limits.
An Insurance Payment Can Create New Decisions
Life Insurance is designed to provide financial support at a time when a household may be dealing with significant change.
Once a claim payment is received, however, the next question may be: what should happen with the money?
Depending on the circumstances, a family may need to consider immediate expenses alongside longer-term financial and legal decisions.
An insurance payment does not automatically tell you what the best next financial decision is. Professional advice can help you understand the options available based on your circumstances.
What Is the Financial and Legal Advice Benefit?
Chubb Life's Financial and Legal Advice Benefit is designed to help with the cost of obtaining professional advice about how to use money received from a qualifying insurance claim.
Under Chubb Life's current Life Cover wording, the benefit may apply after Chubb Life has paid a Life Cover Benefit or Terminal Illness Benefit claim.
Eligible costs can be reimbursed up to a maximum of $2,500, subject to the policy requirements.
Financial Planning Advice
Eligible financial planning advice must be provided through a Financial Advice Provider licensed by the Financial Markets Authority and relate to using the money received from the claim.
Legal Advice
Eligible legal advice must be provided by a lawyer, solicitor or barrister registered with the New Zealand Law Society and relate to using the claim payment.
What Conditions Need to Be Met?
The benefit is not an automatic additional $2,500 cash payment. It is a reimbursement of eligible professional advice costs, and specific conditions apply.
Under Chubb Life's current Life Cover wording:
What Might Professional Advice Help You Consider?
The right questions will depend completely on the person receiving the claim payment and their circumstances.
Professional advice may help someone understand different options around the use of the claim money rather than making significant financial decisions during an already difficult period without guidance.
The benefit pays toward the cost of advice — it does not dictate what you must do with your insurance payment. The purpose of the professional advice is to help you make informed decisions that reflect your own circumstances and goals.
A Simple Example
A policyholder receives a $500,000 Terminal Illness Benefit.
After the claim is paid, they want professional guidance before making significant decisions about their mortgage, household finances and how the remaining funds may support their family.
They obtain eligible professional financial planning advice within 12 months of receiving the claim payment and are charged $2,000.
Provided the Financial and Legal Advice Benefit requirements are met and the reimbursement claim is submitted within the required timeframe, Chubb Life may reimburse the eligible $2,000 advice cost.
This example is simplified for illustration. Actual eligibility depends on the policy wording and individual circumstances.
Why Can This Benefit Be Valuable?
Insurance claims often happen during periods when people are already dealing with major personal, family or health changes.
Making large financial or legal decisions at the same time can add another layer of complexity.
Professional Guidance
Provides access to appropriately qualified financial or legal professionals when important decisions need to be made.
Help With Advice Costs
The reimbursement can reduce the cost of obtaining eligible professional advice after a qualifying claim payment.
Is This the Same as Chubb Life's Client Benefits?
No. Chubb Life also offers a separate Client Benefits service for eligible policyholders and lives assured, which can contribute towards certain pre-approved services following eligible life events.
That is separate from the Financial and Legal Advice Benefit described in this article, which relates specifically to professional advice following eligible insurance claim payments.
It is worth checking which benefit you are using. Chubb Life notes that receiving certain financial or legal advice benefits under a policy can affect eligibility for similar support through its separate Client Benefits service in the same policy year.
What Should You Do After a Qualifying Claim?
Check Your Policy
Confirm that your policy includes the Financial and Legal Advice Benefit and check the current terms.
Choose an Eligible Professional
Make sure the person providing the financial planning or legal advice meets the requirements set out in the policy.
Keep Your Documentation
Retain evidence of the professional advice costs and apply for reimbursement within the required timeframe.
Frequently Asked Questions
Is the $2,500 automatically paid with my insurance claim?
No. The Financial and Legal Advice Benefit is a reimbursement of eligible professional advice costs. A qualifying claim must first have been paid and the other policy requirements must be met.
Can I use any financial adviser?
Chubb Life's current Life Cover wording requires financial planning advice to be provided through a Financial Advice Provider licensed by the Financial Markets Authority.
Can I use any lawyer?
Eligible legal advice must come from a lawyer, solicitor or barrister registered with the New Zealand Law Society.
What if the advice costs more than $2,500?
Chubb Life's Financial and Legal Advice Benefit reimburses eligible costs up to $2,500. Any amount above the benefit limit would not be reimbursed under this benefit.
Can the benefit be used years after a claim?
No. Time limits apply. Under the current Life Cover wording, the professional advice must be received within 12 months after Chubb Life pays the relevant claim, and the reimbursement application must then be made within 12 months of receiving the advice.
Does every Life Insurance policy include this benefit?
No. Benefits vary between insurers and products. This article discusses Chubb Life's Financial and Legal Advice Benefit. Always check the applicable policy wording.
Do you know what additional benefits are built into your insurance?
Insurance can include more than the headline sum insured. A complimentary insurance review can help you understand your existing policy, its built-in benefits and whether your protection still reflects your circumstances and goals.
Book a Complimentary ReviewThis article provides general information only and is not personalised financial or legal advice. It describes selected features of Chubb Life insurance based on current publicly available policy information. Benefits, limits, eligibility criteria and policy terms may change. Please refer to the applicable Chubb Life policy wording and obtain appropriate professional advice for your circumstances.