Filing a Life Insurance Claim

Losing a loved one is an extraordinarily taxing experience emotionally. Before you've even had time to grieve, you have to begin worrying about filing a life insurance claim. If you know the deceased named you as a beneficiary on his/her life insurance policy, it is your responsibility to initiate the process. Here are the steps you should follow when filing a life insurance claim.

1. Be prepared to provide proof of death. Your life insurance claim will not proceed until you can furnish the insurer with proof of death. The hospital or facility where your loved one died may be able to furnish the certificate. Otherwise, if you had a funeral or cremation service, the director may be able to tell you how to get a hold of the death certificate.
2. Contact the insurer who wrote the policy. If you know which insurer underwrote the deceased's policy, contact them immediately. Ideally, you should contact the insurance agent who originated the policy if he/she is still with the company. When you meet with the agent, you will need to bring a copy of the policy and surrender it in exchange for the life insurance benefit. You will also need to bring your ID when filing a life insurance claim.
3. Wait for the investigation. Almost every life insurance claim involves some sort of investigation in order to verify that the policyholder is indeed deceased and no fraud was involved. This investigation may take a few days, a few weeks, or longer depending on the circumstances. Once the investigation concludes, an agent will likely meet with you to complete the disbursement paperwork.
4. Payout arrangements. The typical outcome of the life insurance claims process is a one-time, lump-sum payment to the beneficiary or beneficiaries. However, in some cases, insurers may also offer a specific income option. With this option, you receive the same amount of the death benefit each year for a limited number of years until the benefit is fully paid. If you die while these payments are being made, you can name a second beneficiary to receive the payments.
5. Use the money wisely. The first inclination of most life insurance beneficiaries is to spend the money on a vacation, a car, or some other form of impulse spending. However, before you spend the death benefit, make sure the deceased's debts are completely paid off. Also take care of all funeral and burial expenses. This way, you won't be held accountable for expenses the deceased incurred before passing away.

There are circumstances where a life insurance policy has gone missing, and it can be difficult to file a claim without proof of insurance. Find out how you can find a missing life insurance policy and receive the death benefit from the plan.