Document ID: chunk:federal_register_of_legislation:C2025C00135:section:205
Version: federal_register_of_legislation:C2025C00135
Segment Type: section
Provision Reference: s 205
Character Range: 368513–369829

205  Protection of policy money on person's death
 (1) If, on the death of a person, money becomes payable to the person's estate under a policy effected on the person's life, the following provisions apply:
 (a) except as permitted by paragraph (b), the money is not liable to be applied or made available:
 (i) under any judgment, order or process of a court; or
 (ii) in any other manner whatsoever;
  in payment of the person's debts;
 (b) the money may be applied in payment of a debt of the person if:
 (i) the person had entered into a contract that provided expressly for the money to be so applied; or
 (ii) the person had charged the money with the payment of the debt; or
 (iii) the person gave an express direction, in his or her will or other testamentary document signed by the person, that the money be so applied;
 (c) none of the following constitutes an express direction for the purposes of subparagraph (b)(iii):
 (i) a mere direction that debts be paid;
 (ii) a charge of debts on the whole or a part of the person's estate;
 (iii) the creation of a trust for the payment of debts.
 (2) This section has effect regardless of when a policy was issued.
 (3) This section has effect subject to the Bankruptcy Act 1966.

Division 4—Surrender values, paid‑up policies and non‑forfeiture of policies