How to File a Life Insurance Claim
It’s unfortunate that a life insurance claim calls for paperwork which is hardly welcome to anyone facing the loss of a loved one
Fortunately, you can follow the simple steps below if you’re not sure how to file a life insurance claim.
Below, we’ll show you exactly what to do to make sure you receive the full death benefit from the life insurance policy and explain your options for payout.
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3 Steps to File a Life Insurance Claim
Get the Death Certificate
Speak with Your Life Insurance Agent
File Your Claim With The Life Insurance Company
Payout Considerations when Filing a Life Insurance Claim
3 Steps to File a Life Insurance Claim
Legal and tax reasons require beneficiaries to file claims for a life insurance policy to be paid out. Here are the steps you should know.
1. Get the Death Certificate
The first step is to get a copy of the death certificate of the deceased. It’s actually best to get multiple copies of the death certificate. Depending on the nature of the life insurance company and policy, several people may ask for a copy of this important document.
Sometimes a marriage certificate copy can be helpful as well, especially in case of ex-spouses using names from former marriages. You also need access to current mortgage or loan paperwork, credit card statements and employee benefit information. These will come handy in case of any discrepancies to serve as proof of your loved one’s possessions.
2. Speak with Your Life Insurance Agent
Always call your insurance agent first to ask about the paperwork required for any life insurance policies owned by the deceased. If the life insurance policy turns out to be a part of an employee benefits package, contact the employer to ask for the procedure.
One doesn’t always know the type of life insurance policies a spouse or family member carried. Employers, credit card companies or other financial institutions offer group life insurance policies. They are easy to sign up for and can often be free or very inexpensive. If possible, review credit card statements and bank statements and find out from the employer or benefits administrator about any additional insurance coverage the deceased may have held.
Other possible policies could include travel life insurance, mortgage life insurance, accidental death insurance,
3. File Your Claim With The Life Insurance Company
Every adult beneficiary of a life insurance policy needs to fill out a proof of death form for the company behind the life insurance policy
This requires a copy of the death certificate, which you should already have. Ask your insurance agent to get you these forms and help with the process. All of you have to fill out other associated forms too, that fulfill income reporting requirements for the IRS.
The processing period should take less than a week.
The insurance company will review your claim, confirm
Payout Considerations when Filing a Life Insurance Claim
If the insured person had chosen a payment plan, you’ll find out at the time of filing your claim. Certain plans could allow beneficiaries to choose a payment option once they become eligible for the payments.
Life insurance policies are paid out to beneficiaries usually in the form of lump sum payments. This is the preferred option due to the lack of income tax being levied on the proceeds, allowing beneficiaries to be free to invest and manage their proceeds
Other options include regularly scheduled payments, which is usually used for beneficiaries incapable of managing a large sum of money, like children, and settlements where the insurance company invests the policy funds, paying the interest proceeds to beneficiaries.
If you’re still not sure how to file your life insurance claim, give us a call and we can answer any questions you might have.
As principal licensed life insurance agent Bennett Bier has helped 1000’s of people purchase life insurance online & over the phone. During his career he has become the go to expert for securing hard to place term and permanent life insurance policies for clients across the nation. With his wealth of knowledge of each life insurance carrier’s products and underwriting he provides honest answers and advice to every client. Bennett Bier and his team will work tirelessly to successfully secure the coverage your family deserves.
All content on this site has been written by life insurance experts & licensed life insurance agents.