Learn how to claim life insurance in case of death so you don’t miss out on receiving a financial gift from the person who chose you as a beneficiary.
Getting a life insurance payout shouldn't be extremely complicated, no matter if the policyholder had term or whole life insurance. Follow these steps to make the process as smooth as possible.
The amount you receive depends on how much coverage the policyholder opted for when they originally took out the policy, as well as any outstanding premiums or policy loans.
There’s no time limit on filing the initial claim, as long as three conditions are met:
You may not be sure if you actually are a beneficiary. If you’re able to, check the deceased’s personal belongings for any communications about a life insurance policy. If that’s not possible, you can submit a request through your state’s insurance commission. They will then have all licensed insurance companies perform a search to see if the deceased had a policy and if you are a beneficiary.
While you don’t face any limits on when you can submit a claim for a payout, there could be a limit to how long you’re able to appeal if your claim is denied. Some states have a statute of limitations on how long you can wait to file a legal appeal, usually limiting it to two years.
The amount of time it takes to receive a life insurance death benefit depends on a few factors, including the individual life insurance company. It could take anywhere between one week and two months, but the norm is usually around 30 days.
There are a few reasons you may encounter a delay in having your claim processed.
There are several situations in which a life insurance claim could be denied.
Original application was incorrect: If during the contestability period, it is revealed that the policy holder lied on their original application, the claim may be denied. For instance, if they lied about being a smoker or having a pre-existing condition, then the death benefit may not be honored.
Cause of death wasn’t covered: Not all types of death are covered by life insurance. Each policy will have its own details. Most frequently, the following causes of death will nullify a life insurance policy:
Have more questions about online life insurance? Check out these FAQs to better understand everything you need to know as a beneficiary or a policyholder.