Life insurance claims are usually paid very quickly, as long as there are no complications. Some sources say that ninety percent or more of life insurance claims are paid within five days. When someone dies and has insurance, it is the beneficiary who needs to file the claim so that they can collect the death benefits. This claim often needs to be filed quite quickly, because most of these policies do have a time limit.
Sometimes, the beneficiary will be unaware that an insurance policy exists. In this case, you can always check banking records to see if any payments were going to an insurance company. You can also try checking with car insurance or health insurance policies to see if there was life insurance bundled with it at all.
After you have located the policy, the beneficiary will need to ask for a claim form. On this form, you will need to fill in the policy number, the name of the deceased, as well as a copy of the death certificate. Also included should be the full name and address of the beneficiary.
After the form has been received back to the insurance company, they will begin verification of the information. They will ensure that the policy exists and that premiums have been paid. The correct person will be identified as the beneficiary, and then they will verify that information is correct before releasing funds to the one making the claim.
Life insurance claims can seem quite complicated, especially when you are in a time of mourning. It is, however, something that will need to be done so that costs like the funeral, unpaid bills, debts, and other outstanding accounts can be paid and closed out. Whatever money is left over goes to the beneficiary.