How to file a life insurance death claim

When the unspeakable happens, life insurance can help a family when they need it most, but how does a beneficiary receive the death benefit after the loss of a loved one? Knowing how to request life insurance benefits during such a difficult time can feel overwhelming and stressful, but fortunately, the process is usually straightforward. Since a policy’s death benefit is not paid out automatically, a beneficiary must file a death claim to receive the payout. Here’s what to know about life insurance claims and what steps can help ensure a smooth process.
 

How do you know if someone has life insurance?

Often, family members may not know if a loved one has a life insurance policy, and if that person passes away, they may be left wondering what to do. There are a few options for finding out more information about a life insurance policy and getting the information needed to file a claim.

Contact insurance agent or company

If the person’s insurance agent or company is known, it may be possible to inquire about the existence of a life insurance policy. Having proof of your relationship is commonly required to obtain this information.

Review will or estate plan

Life insurance policies are often included as part of an individual's estate planning documents, such as a will or trust. If you have access to these documents or are involved in the person's estate planning process, you may find information about life insurance.

Ask family members or close contacts

If appropriate, consider asking the person's family members, close friends, or trusted contacts if they are aware of any life insurance policies.

Check personal documents

If you have access to a person’s financial records or files, you may be able to find information about life insurance policies.

Who gets a life insurance payout?

When a person purchases a life insurance policy, part of the process is designating one or more beneficiaries. Choosing a beneficiary is an important decision, as this will be the person or organization that will file a claim and receive the death benefit if an insured passes away. If there are multiple primary beneficiaries, the payout will be distributed equally or based upon a percentage that is determined when the policy is purchased.

How to file a life insurance claim

Depending on the insurance company, filing a claim can be completed online or through a paper claims process, and they will often provide valuable resources and a claim packet to guide you through each step. Here’s an overview of the basic steps of filing a claim:

Get a copy of the death certificate

Most insurance companies require an original certified death certificate issued by the state in which the deceased passed away, with the cause and manner of death listed. A beneficiary must obtain a certified copy of the certificate, not a photocopy. The funeral director handling the final arrangements can usually help in getting the copies that are needed.

Contact the insurance company or your financial professional

If you need assistance, the insurance company or a financial professional can help explain the claim process and what is required. If there is a copy of the life insurance policy, check the company name and/or agent listed on the paperwork.

Complete the claimant’s statement

Each beneficiary must complete and submit a signed claimant’s statement, which is typically included in the claims packet. Most forms ask for the policy number, basic information about the deceased, the claimant’s information, and settlement options, which is how a beneficiary wishes to receive the payout.

Follow special instructions and additional requirements

Depending on the policy and named beneficiaries, other forms or documents may be required. Speaking to an agent or the Claims Department at the insurance company can help determine if additional information is required to complete the claims process.

How to collect a death benefit

Part of completing the claimant’s statement is for the beneficiary to choose how they wish to receive the life insurance payout. This commonly includes a lump sum paid all at once or installments paid over time. Lump sum payments give instant access to the life insurance benefit in the form of a check or bank deposit, while installments spread payments out over time. Sometimes, an interest option is available where the death benefit is left on deposit to accrue interest, or a life income option is available where the insurance payout is converted to an annuity and guaranteed payments are received for the rest of the beneficiary’s life.

How long does a life insurance claim take?

Once a claim is submitted, payouts are usually processed within two weeks after receiving the paperwork but can take up to 60 days. Missing paperwork or information on the claim form can slow the process, so be sure to review everything carefully before submitting it. After the claim is submitted, the insurer will review the claim form, death certificate, and any additional documentation. The insurance company will likely reach out if further information is needed or if there is an issue with the claim. A few factors that can influence when life insurance benefits are paid include:

• The insured’s cause of death
• The length of time following the death that the claim was filed
• If all required documentation was included
• State laws regarding life insurance payouts Each company has different rules, so review the claims packet carefully or speak to the insurer directly if you have any questions.

The status of a claim online or by calling the company. Many insurance companies know it’s a very difficult time and want to make the claims process as smooth and straightforward as possible.

When is a life insurance claim denied?

In most cases, life insurance benefits are paid out in a timely manner as long as all steps are followed and necessary documentation is provided. If a claim is denied, the insured may have stopped paying their premiums and coverage had ended, false information was provided on the original application, or the cause of death did not fall within the rules of the policy. If, for any reason, you receive a letter indicating that the claim has been denied, you can contact the insurer to receive further information and next steps.

Help with the claim process

When the claims packet is completed, and an original copy of a certified death certificate is mailed to the insurance company, the claim process will be set in motion. The best thing to do to help the process go smoothly is to ensure all necessary information and documentation are provided. If you need to file a claim, you are likely experiencing an extremely difficult time. Remember that as a beneficiary of a life insurance policy, you have a person in your life who wants to leave behind a positive and lasting impression.

To report a death and file a claim with North American Company, visit the Life Claims Forms page or call toll-free at 877-880-6367.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.

B4-NA-8-24