Processing a life insurance claim properly is very important as it can determine the amount of time that it takes for the life insurance company to give you the funds. It can be hard to secure the funds for a proper funeral and burial without the money. If you understand how to properly process a life insurance claim then you will be able to receive the funds in a timely manner. You may also be able to work with the life insurance company to get more of the money that you need up front.
The life insurance company should be contacted within 24 hours of death. While this is not necessary it will help in speeding up the claim so that the funds arrive in time. If you are not sure if the person had a life insurance policy then you will have to talk to the person that’s in charge of the affair and possibly other family members. In some cases no one may know if the deceased person had a life insurance policy. If this is the case then you will need to do some investigating to find out. The best way to go about this is to call all of the local life insurance companies and find out if the person had a policy with them.
Once the agent has been notified that the person has passed and the agent has confirmed the person’s life insurance policy they will then send you paperwork that must be filled out. The beneficiary doesn’t have to fill out the paperwork directly however he or she will have to be on hand to be able to validate the claim and receive the payment from the company. If you run across any questions while filling out the paperwork you should call the agent at the life insurance company and ask them.
You will now need to collect an original death certificate. This can usually be obtained from the coroner’s office but sometimes you can receive it from the funeral director as well. You will need to make copies of the death certificate to send to the insurance company as proof that the person has passed away. If the person held multiple life insurance policies then you will most likely need to send one to each company that they had it with. In some circumstances you will be requested to send them the original copy of the death certificate. Unless the company specifically asks for the original for a specific reason you should only send them a copy of the original. Most of the time a copy will suffice for the insurance policy. If you do accidentally send it to the company then you will need to either get it back from them or get another official original document.
After you’ve returned the paperwork you will want to know how the policy is going to be paid out. Each policy and company is different. Some companies will release one giant payment while others will spread it out as it’s easier on the company. If the company has the policy set up to be paid out over time you may need to try to negotiate an initial lump sum if the burial costs are higher than what the policy is going to give in the first payment. After you’ve done everything the company should distribute a payment in the first week which is when most funerals take place. However if there’s a delay in the process you may need to contact the company to find out what the problem is.
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