When someone close to you dies, one of the thoughts that come to your mind after getting over the loss is How to Claim Life Insurance. If your case is so, this article has got you covered.
In this article, you will get a detailed guide on how to file this type of insurance claim. So, keep on reading.
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How to Claim Life Insurance
Before we proceed to the process involved in filing a Life insurance claim. It is important for you to know what a life insurance claim is and how it works. So, what is a Life Insurance?
Life insurance is a signed contract between you and your insurer. This company will collect a premium from you and will pay a sum of money to your beneficiaries after your death.
There are two types of Life insurance. They include term life insurance which provides coverage for a certain period of time. The other type is Permanent Life Insurance, which can last for the whole duration of your lifetime.
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How to Claim Life Insurance When Someone Dies – Life Insurance Claim Process
You can only file this type of claim if you are a beneficiary of the deceased. As a beneficiary, you will be required to contact the insurance company of the deceased as the insurer may not be aware of the death.
Filing a life insurance claim is quite easy and the process has been outlined below.
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Get the Important Documents
To back up your claim, you need to provide valid documents. The documents that will be required from you depend on the insurance company. In general, the Death certificate, Policy document, and claim form are three important documents needed to file a claim.
A certificate is used to prevent fraud. You can get these documents from a funeral home or medical professional.
The Policy document of the deceased contains the policy number of the policyholder, the death benefit amount, and other important information. It may be difficult locating this document. If you can’t find this document, contact the deceased’s financial advisor or insurer.
The last important document is the claim form which is also known as the request for benefits. On this form, you will fill out the name of the policyholder, the cause of death, your relationship with the deceased, and how you want to be paid if the request is approved.
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Contact the Insurance Company
After compiling the necessary documents, you need to contact the insurer of the deceased and inform them of the death. You will also notify them of your intention to file a claim. The sooner you get the claim, the sooner you receive payments from the insurer.
The representative of the insurer will also guide you on the process. You will know if you are to make the claim online, over the phone, or in person.
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Wait for the Claim to Be Processed
When you have submitted the needed documents, you have to wait for the insurance company to carry out a proper investigation. The agent will determine if you are a beneficiary, and the policy will also be reviewed to ensure it is still active. Other checks will be performed to ensure the policyholder did not stop paying the premium and that the coverage has not expired.
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Collect the Death Benefit
As a beneficiary, you can determine how to want to be paid. The payments can be made in a lump sum. This means that you will get the entire death benefit at once. If you want funds to cover a home loan or the funeral, you can go with this option.
Also, you can be paid in installments. This involves the insurance company paying you the benefit on a schedule rather than the whole benefits at once.
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What to Do If Your Life Insurance Claim is Denied
If your claim is denied, you can contact the insurance company to give an explanation.
If you are not satisfied, you can contact your state’s department of insurance or lawyer. But you should know that Life insurance claims are rarely denied provided you present the right documents and the cause of the death is covered by the insurance policy.
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