How To File A Life Insurance Claim As A Beneficiary
Life insurance is for the future of those who receive the benefits. For that reason, it’s a common hope that beneficiaries never have to file, but in the event that a policy needs to be fulfilled, it’s best to know how to claim a life insurance policy payout.
Losing a loved one is difficult but falling on financial hardship would make your situation much worse. Filing a life insurance claim will help eliminate one worry from your mind during a difficult time filled with transition. Filing a life insurance claim is pretty simple once you have an idea of the steps you should take.
Contact The Insurance Company
In order to receive the death benefit, you’ll need to contact the insurance company that holds the policy. Be prepared when you make the call to make the process as smooth as possible.
When you call, have these documents handy:
Death Certificate: To help prevent fraud, the insurance company will request a copy of the policy holder’s death certificate.
Policy Document: This document holds all the necessary information about the policy of which you need to make a claim, including the term, the death benefit amount, the policy holder’s information and more. The policy document gives the insurer all the info necessary to ensure you’re making a claim on the correct policy.
It can be difficult to file a claim if you can’t locate the policy document. It was reported in 2013 that there was an estimated $1 billion worth of unclaimed life insurance benefits in the U.S. If you can’t find the policy document, follow these steps.
Contact the insurance companies you believe the policy holder used.
Search for proof of payment to certain insurance companies through financial records or W2 documents.
Contact your state’s insurance department to see if they can assist.
Claim Form: This form is commonly referred to as a “request for benefits.” The insurance claim form requires you to fill out information about the policyholder, like the policy number and cause of death. You’ll also fill out personal information as you’re serving as the beneficiary.
After The Paperwork
Once you’ve filed the necessary documents on your end, the insurance company will process your claim. The company will do a few checks to ensure you are the beneficiary and they aren’t paying money out to the wrong person. The company will also double check the type of policy held, so if premiums had stopped or a term policy had expired, the claim will be invalid.
Depending on the time it takes to make those checks, the insurance company should provide a payout within a few days, but receiving benefits to an insurance policy could take as long as 30-60 days. Insurers are relatively good at paying out in a timely manner to avoid paying interest on unpaid death benefits.
Getting paid
Once you’ve filed the paperwork and the insurer has made all necessary checks, you can now receive your benefits to take care of your financial responsibilities. The insurer and plan may play a role in how you’ll be paid, but you’ll likely have a choice in being paid through a lump sum or in installments.
If you have questions about a life insurance policy or how you file for the benefits of a policy, reach out to the Texas Republic Insurance Solutions team.
