Term Life Insurance Articles
Typical Stages Of A Term Life Insurance Claim Procedure
2011-01-06
Although filing a life insurance claim might be the last thing on someone's mind when they lose a family member, it is necessary to file a claim in order to receive the benefits of a term life insurance policy. Understanding the stages of filing a claim will simplify the process.
Look at the documents the deceased person has to determine what life insurance was in force at the time of their death. If they were employed their employer may have that information. Also contact their insurance agent to see what individual policies were taken out. By looking at their bank statements you may be able to determine who premiums were paid to and then you can contact that insurance company.
When you call the insurance company you may need some identifying information to locate the policy such as the full name of the deceased, their social security number, date of birth and policy number if you have it. You may also be able to get information about their term life insurance through the state insurance department.
When you are ready to complete the paperwork you will need the original or a certified copy of the death certificate. The insurance company will ask you to also provide your identification as the beneficiary of the policy. If you are the spouse of the deceased then also have a copy of your marriage certificate ready.
When you contact the insurance company you will be supplied with a "proof of death" form. You must complete the forms and then enclose any documents that are requested. You may also need to submit forms for the IRS regarding the life insurance proceeds. The insurance agent can be of assistance if you need help completing the forms or have questions. Then submit the forms to the insurance company.
The insurance company will process your claim, usually within a week. The process includes a review of the forms submitted, verifying the documents sent in and verifying that the policy was in-force at the time of death. If there are any discrepancies the insurer may want to investigate the claim which can delay the claim.
The policyholder may have chosen a payment plan for the proceeds of the policy. But as the beneficiary you may be able to choose how the funds are paid to you. Usually the payment is made in a single lump sum. But the payments can also be made over time according to a schedule. This option is most often used for underage beneficiaries. Once the life insurance claim is approved and the payment plan is settled a check will be made out to the beneficiary.
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Although filing a life insurance claim might be the last thing on someone's mind when they lose a family member, it is necessary to file a claim in order to receive the benefits of a term life insurance policy. Understanding the stages of filing a claim will simplify the process.
Look at the documents the deceased person has to determine what life insurance was in force at the time of their death. If they were employed their employer may have that information. Also contact their insurance agent to see what individual policies were taken out. By looking at their bank statements you may be able to determine who premiums were paid to and then you can contact that insurance company.
When you call the insurance company you may need some identifying information to locate the policy such as the full name of the deceased, their social security number, date of birth and policy number if you have it. You may also be able to get information about their term life insurance through the state insurance department.
When you are ready to complete the paperwork you will need the original or a certified copy of the death certificate. The insurance company will ask you to also provide your identification as the beneficiary of the policy. If you are the spouse of the deceased then also have a copy of your marriage certificate ready.
When you contact the insurance company you will be supplied with a "proof of death" form. You must complete the forms and then enclose any documents that are requested. You may also need to submit forms for the IRS regarding the life insurance proceeds. The insurance agent can be of assistance if you need help completing the forms or have questions. Then submit the forms to the insurance company.
The insurance company will process your claim, usually within a week. The process includes a review of the forms submitted, verifying the documents sent in and verifying that the policy was in-force at the time of death. If there are any discrepancies the insurer may want to investigate the claim which can delay the claim.
The policyholder may have chosen a payment plan for the proceeds of the policy. But as the beneficiary you may be able to choose how the funds are paid to you. Usually the payment is made in a single lump sum. But the payments can also be made over time according to a schedule. This option is most often used for underage beneficiaries. Once the life insurance claim is approved and the payment plan is settled a check will be made out to the beneficiary.
