Posts Tagged ‘life insurance claim’

The beneficiary of a person’s life insurance policy does not automatically receive the benefit; a few steps must be taken to claim it:

1. Verify that the policy remains in effect and covers the applicable cause of death.

Ensure that it is not expired or canceled. Most life insurance policies pay the benefit in every situation except suicide, which may be covered if the policy has been in effect for at least two years. A few other rare exceptions might apply.

2. Obtain an official certificate of death and contact the insurer promptly.

You will need to provide a copy of the certificate to your insurer (don’t send the original). It should be certified. Your funeral home can provide assistance with regard to the death certificate. Communicate with your insurance company or agent for specific details on the claim process.

3. The life insurance company might take steps to confirm that the claim is valid, especially if the policy was recently established. Interest on the benefit will collect if the payment is delayed.

4. The insurer will pay the full benefit, unless you choose to receive it in installments; a bank account will be necessary to deposit the funds. Refer to the policy and verify that the correct amount has been disbursed.

It is also helpful to take a couple of preparatory measures before the time comes to claim a life insurance policy:

1. Keep the beneficiary name(s) on life insurance policies up to date. For example, a daughter or mother’s name ought to be updated if she marries (or remarries) and takes the husband’s last name.

2. Putting the policy itself in a safe, accessible location will make it easier to claim. The Insurance Information Institute warns not to keep it in a safe deposit box (access might be delayed by this).