How Long Does It Take To Claim Life Insurance?
When it comes to receiving a death benefit payment from a life insurance policy, the time it takes can vary depending on the type of policy and specifics of the claim. Generally, it can take as little as three to five days from the time you file a claim if you are a named beneficiary. However, if the insured’s death occurred during the policy’s contestability period or there are questions about the cause of death, the insurance company is required to conduct a contestability investigation, which may delay the payout of the death benefit or result in a denial of the claim.
Steps to File a Life Insurance Claim
Most insurers allow you to file a life insurance claim online, while some may require you to file in person or over the phone. Here are the general steps to file a claim:
| Step | Description |
|---|---|
| Step 1 | Locate the insured’s life insurance policy that contains the insurance company’s contact information and claim instructions. If you can’t find the policy, provide the insurance company’s name, and they should be able to track down the policy information. |
| Step 2 | Submit a claim form and provide all the required documentation, including personal details about the insured and yourself, and the death certificate. |
| Step 3 | Decide on the potential payout options, such as a lump sum or a life insurance annuity, and submit the claim to the insurer. |
| Step 4 | Assuming there are no issues, you may receive your payout in as little as a few days. |
When making a life insurance claim, you will most likely need to provide personal details about the deceased, yourself, and the death certificate. If there’s more than one person listed as a beneficiary on the policy, each person named will have to fill out a claim form and submit the required documentation to be considered for their portion of the payout.
Reasons for Life Insurance Payout Denial or Delay
There are a few common reasons for a life insurance payout denial or delay:
- The insured’s death occurred during the policy’s contestability period.
- There are questions about the cause of death.
- Fraud is discovered.
- The cause of death isn’t covered by the policy.
If you suspect a loved one had an unclaimed life insurance death benefit, several states have passed laws requiring life insurance companies to use technology to identify policyholders who’ve died but whose beneficiaries haven’t made a claim on the policy. You can also contact the insurance company and provide certain information about yourself and the deceased to track down the policy information.
Overall, understanding the steps to file a life insurance claim and potential reasons for a payout denial or delay can help expedite the process and ensure a smooth payout of the death benefit.
