How to File a Life Insurance Claim

Life insurance can help offer important peace of mind. If you lose a loved one, there can be some comfort in knowing they made preparations to care and provide for you, even after they’re gone.

The days and weeks after losing a loved one are painful and often busy with various arrangements to organize. Fortunately, the life insurance claims process tends to be fairly straightforward, and a benefit can help ease financial worries at a difficult time in your life. Here’s what to expect if you need to file a life insurance claim.

What Is a Life Insurance Claim?

A life insurance claim alerts an insurance company that a policyholder has passed away and it’s time to process a death benefit. The insurance provider collects information to confirm the insured person has died, review policy coverage and identify the beneficiaries, after which they can deliver the benefit to the beneficiary.

Step-by-Step Guide to File a Life Insurance Claim

It’s essential to have a few necessary documents at hand to help file a claim. Here’s how to make the process go as smoothly as possible.

Locate the life insurance policy information

Generally, a life insurance claim form will ask for the insured person’s policy number. In a best case scenario, your loved one kept clear, organized records. You might find a physical copy of the policy in a file cabinet or digital records on their computer. You might also be able to locate a policy by looking at financial statements to find premium payment information, or by contacting the deceased person’s financial advisor.

If you can’t find the policy but know which insurance company your loved one worked with, you may be able to call them and ask for help looking up the policy. To do this, you may need other identifying information, such as their full name (and maiden name if applicable), date of birth and in some cases additional info like their SSN. If you’re having trouble finding any policy information, you can use a free Life Insurance Policy Locator tool online to help check whether your loved one had life insurance coverage.

Get a death certificate

Copies of the death certificate are important to handle various arrangements after a person dies. These records are required when managing funeral arrangements, notifying government agencies (e.g., cancel their driver’s license), accessing financial accounts and more. A life insurance company may also need a certified copy of the death certificate.

Contact insurance provider to file claim

An agent at the life insurance company can assist with making sure claims forms are completed correctly. Generally, having the following information at hand makes it easier to complete the form:

• Personal information for the insured person (e.g., name, address, date of birth, SSN)

• Policy number

• Name and address of beneficiaries on the policy

• Brief description of the cause of death

• Death certificate (typically, you’ll need a certified copy)

  Beneficiaries can usually choose how they want to receive the death benefit. Many life insurance companies offer options to receive the money as a single lump sum or in installments over a certain amount of time.

Claims process

Once the requested information is submitted, the insurer reviews the documentation. In most cases, if the policy is up to date and everything is in order, an insurance company can process a claim fairly quickly. Benefit payment could be processed within a few business days to a few weeks.

Why Am I Not Receiving the Benefit Money?

A few things can slow down the process of approving a claim. Here are some common reasons that could cause a delay:

• Multiple beneficiaries: If there are multiple beneficiaries on a policy, each beneficiary may need to complete a claim form separately.

• The insured person died within two years of opening the policy: When a policy first becomes active, there’s normally a “contestability period” when an insurance company can choose to investigate a claim before processing the benefit. An investigation doesn’t mean your claim is being denied; it just means the insurer may exercise the option to double-check that all information on the initial application is in order before approving the claim.

• The insured person died by suicide: The insured person died by suicide: Life insurance policies include a suicide provision. Check your policy for full details about this provision. (If you or a loved one is struggling, a free mental health hotline can offer a listening ear and help you find resources for support.)

• The policy has terminated: The policy could have been cancelled, surrendered for cash or used to purchase a new policy. This means the policy was cancelled before the person passed away. If old life insurance policy records such as overdue premium notices or policy lapse warnings are found, the policy may have terminated. The beneficiary should get in contact with the insurance company to determine the status of the policy.

What If I Can’t Find Their Life Insurance Policy?

Not everyone is organizationally gifted, to put it mildly (my child’s backpack is Exhibit A). If documents are misplaced or thrown out, you might not realize your loved one had a life insurance policy for you to collect. Will the beneficiary still get a life insurance benefit if they can’t find the policy?

Life insurance companies are part of a legal agreement with the people they insure. They have a duty to pay the benefits they promise. The Unclaimed Life Insurance Benefits Act sets guidelines for insurance companies to follow to find beneficiaries, even if no one makes a claim. For example, life insurance companies check records in the U.S. Social Security Administration twice a year to help identify policyholders who have passed away. Insurance companies will try to reach out based on the contact information they have available.

If the insurance company cannot locate the beneficiary, the insurance company is required to follow procedures to turn the benefit money over to the state treasury, and beneficiaries may be able to recover the funds from there.

Letting life insurance benefits go unclaimed can add years, and a lot of complication, to the process of collecting the money your loved one planned for you to receive. A much quicker route is for them to keep clear records, and for beneficiaries to make a claim promptly and use life insurance locator tools to help find any policy the insured person may have left behind. But it can be reassuring to know the life insurance company has ways to help beneficiaries claim their benefit, even if the policy is missed completely.

Filing a life insurance claim can feel like one more task in the midst of a painful time after losing a loved one. The process is generally short and relatively simple, but it’s more than OK to reach out for assistance. Get in contact with the insurance company, and an agent should be able to answer questions about the claims process step by step, to help beneficiaries receive their benefits as quickly as possible.

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