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When a loved one passes away, most people don't want to start their mourning process by filing out life insurance paperwork. However, for legal and tax reasons, beneficiaries need to file life insurance claims to receive their settlement. The following tips can serve as reminders as you deal and cope with the lost of a loved one and dealing with your life insurance company.
Contact Your Life Insurance Agent
Contact your life insurance agent to find out what paperwork you need to complete and what documentation you will need to provide. If your loved one's life insurance policy was part of an employee benefits package, contact the employer for information on how to proceed.
Know What Paperwork You Will Need to Provide
You should obtain a copy of the death certificate. In some cases, a copy of your marriage certificate may also be helpful. You should also have access to current mortgage or loan paperwork, credit card statements and employee benefits information. Having these will help if any discrepancies arise, and can serve as proof of what your loved one owned.
Each adult beneficiary of a life insurance policy must fill out a "proof of death" form and submit it to the company through which the life insurance policy was held. A copy of the death certificate is required with this. Your insurance agent can get these forms for you and can help with this process.
The processing phase shouldn't take longer than a week. The insurance company must review your claim, confirm the policy is valid, and its requirements have been met. If the insurance company does not believe the policy's conditions have been met this phase can be delayed while necessary information is collected.
The insured person may have chosen a payment plan. If you were not aware of there being a payment plan, you will receive the details when you file your claim. Some plans allow beneficiaries to select a payment option when they become eligible to receive proceeds. When life insurance policies are paid out to beneficiaries, they usually take the form of lump sum payments.
To financially protect your loved ones in the event of your passing, make sure you have enough life insurance coverage. To find the right life insurance policy, compare multiple life insurance quotes as life insurance companies use your health information differently; resulting in different premiums. Protect your loved ones financial security with the right amount of term life insurance coverage.
The information contained on or provided through this site is intended for general consumer understanding and education only and is not intended to be and is not a substitute for professional financial or accounting advice. Always seek the advice of your accountant or other qualified personal finance advisor for answers to any related questions you may have. Use of this site and any information contained on or provided through this site is at your own risk and any information contained on or provided through this site is provided on an "as is" basis without any representations or warranties.