How To File A Life Insurance Claim

Here are the steps to filing a life insurance claim

1. Contact the life insurance company to start the claims process. If you know what company they used or have their agent’s contact information give them a call so they can initiate the claim.
2. If you are unsure what company your loved one’s policy is with try checking bank statements for debit transactions. You may also check their mail for correspondence from an insurance company. In rare instances if you can’t find the information you need the National Association of Insurance Commissioners has a policy locator service that may be able to help.
3. Once the company receives your request they will send you the required paperwork to file the death claim. This paperwork will allow you to verify your identity as the beneficiary.
4. Get a copy of the death certificate from the funeral home or and send it in along with the other required claim forms you received from the insurance company, medical provider, or your local vital records office.
5. Receive the life insurance payout. Most companies can have a check in your hand anywhere from 7-30 days. You may elect for a lump sum payment or be paid in installments.

How do I pay for a funeral while waiting for the claim to be processed?

Since it may take a little time to receive the life insurance check some people wonder how to pay for funeral expenses while waiting. After all, we can’t wait 30 days to have a memorial service for our loved ones.

Most funeral homes will go ahead and provide services once the life insurance policy has been verified and confirmed to pay out. They will have you sign a form that allows the insurance company to send them a check for the exact amount of services.

Can my claim be denied?

Life insurance claim denials are very rare. Companies complete their due diligence before issuing policies to prevent complications on the back end. Here are a few instances where a claim my be denied.

• Expired term life insurance– Term is temporary coverage. If the insured dies outside of the term period there is no payout.
• Lapsed Policy– If the insured stopped paying on the policy and it went out of the grace period the coverage ended. A claim cannot be filed in this case.
• Waiting Period– Some policies have a 2-year waiting period. If a person passes away in the first 2 years the family receives a return of the premiums that were paid instead of the actual death benefit.
• Contestability– If someone dies in the first 2 policy years the insurance company may review the application again to verify there was no fraud or false representations that would’ve prevented the policy from being issued. If nothing is found they still pay the claim.
• Suicide– There is a suicide clause in life insurance policies that states if the insured commits suicide in the first 2 years of the policy the claim will be denied. If it were to happen after 2 years benefits would still be paid.

Is there a time limit on filing a claim?

No, there is no time limit. Life insurance companies are required to hold beneficiary funds until they are claimed.

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