1. Find the life insurance policy
Before you can submit your life insurance claim, you'll need to confirm the deceased actually had a policy and named you a beneficiary.
If you don't know whether the deceased has a life insurance policy: You can find a life insurance policy by speaking to friends or financial advisers of the deceased. They may be able to point you in the right direction. You can take your time; life insurance policies have no expiration date.
The National Association of Insurance Commissioners offers an online, insurance-agnostic life insurance policy locator that you can use for free. You can search for policies by entering the personal details of the deceased and your relationship to them.
If you know where the deceased has a policy: You can begin to gather the documents you'll need to file a life insurance claim.
2. Gather the necessary documents
Before filing a claim, you'll need proof (1) the deceased has passed away and (2) you're the actual beneficiary. To that end, here's the documentation you'll want on hand.
- Death certificate(s): Gather one or more death certificates to confirm the deceased is gone. This is how insurers confirm the death benefit needs to be paid. You can get a death certificate from the deceased's funeral home or mortuary.
- Personal details: You will need to provide personal details about the deceased or yourself to prove your identity. This includes names, dates of birth, date and cause of death, and states of residence.
- Policy details: You'll probably need either the deceased's policy number or their Social Security number (SSN).
Once you've gathered the necessary documents, you can move on to contacting the insurer.
Once you've gathered necessary documentation, contact the life insurance company of the deceased for next steps. It will get you started with filling out claims forms.
You can typically reach out through the insurance website or by calling a toll-free number for claims (also on the website).
Insurers have different ways of putting you through the claims process. Some let you file claims completely online. Others may guide you through the claims process with an insurance agent. Either way, the insurance company will provide you with the claims forms.
This may be especially unusual because the deceased is the one who chose the life insurance company, but you're the one who has to file a claim. The good news is, once you file, the hard part is done. Your only job is to wait for payment and follow up with insurance if necessary.
How will I get paid the life insurance money?
You can typically choose from one of a few ways to get paid life insurance: all at once, in installments, or through an interest-bearing account. (Regardless of how you get the life insurance money, it's most likely tax-free.)
All at once
Beneficiaries can choose to get their money all at once. This is very common. The insurer will pay out the full death benefit right away.
If the death benefit is more than $250,000, beneficiaries may want to split the money into multiple bank accounts. That's because FDIC insurance only covers up to $250,000 in deposited funds per person per account.
Installments
Beneficiaries can choose to have life insurance money paid out over time. For example, if the policy provided a $500,000 death benefit, the beneficiary could request $50,000 payments each year for 10 years.
The insurer keeps the not-yet-paid money in an interest-bearing account for beneficiaries who choose this method. Interest is taxable.
Interest-bearing account
Some insurers let beneficiaries request that life insurance proceeds go into an interest-bearing account that they can draw from whenever they like. Beneficiaries are provided with a checkbook they can use to access the funds.
The funds in these accounts are guaranteed by the insurer even if they're above $250,000, the FDIC account limit.
How long does it take to get life insurance money?
Typically, insurers have 30 to 60 days to pay the death benefit after receiving a valid claim. Some do so faster -- Haven Life claims to pay life insurance money within 24 hours of receipt.
However, if the life insurance claim is contested, it could take months or even years to sort out whether the claim is valid and should be paid.
What to do if your life insurance claim is denied
Insurance companies must provide written documentation for why they deny claims.l Common reasons include:
- Death by a cause that is not covered, such as suicide
- Death while doing an excluded activity, such as skydiving or crime
- Dishonesty when the policyholder submitted their application
- Policy lapse due to nonpayment of premiums
- Expiration of term life policy
Beneficiaries who believe their life insurance claim was improperly denied can appeal the denial. This involves contacting the insurer directly to initiate the appeals process. Consider hiring an attorney or contacting the state's Department of Insurance for help.
Fact Checked
Ashley Maready