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How Long Does It Take To Receive Your Life Insurance Claim?

How Long Does It Take To Receive Your Life Insurance Claim?
When you make the decision to take out a life insurance policy, you may have many different specific motives. But the bottom line is buying the right to a death benefit of a particular amount, given that a specific set of circumstances apply.
Term life and whole life are different on this point. In the former case, the benefit only applies within the policy’s term – and you hope that it won’t be needed. In the latter case, however, the benefit is guaranteed so long as you make all of your required premium payments.

How Fast Will A Life Insurance Policy Pay Out?
If you have all of your required documentation in order, contact the insurer early and send the application form out without delay, it isn’t uncommon for many companies today to pay out in as little as 10 to 15 days.

A more average period for life insurance companies to deliver the death benefit in would be around 30 days, while it is very rare for the payout to be delayed longer than 60 days.

Also, realize that there is a limit to how long a company can take after the death of the insured (and the satisfaction of all requirements) to deliver the benefit to the beneficiary. Insurers will act well in advance of the state limit, however, to avoid risking overstepping it and suffering a fine or other legal trouble.

Some life insurance companies pay out faster than others. And your policy may involve a single lump-sum payment or an annuity or gradual pay-out plan, which also has to be taken into account.

How Do I Apply For The Death Benefit?
One of the factors to consider in choosing a life insurance company is how simple and straightforward they make the claims process. But, for the most part, they are all somewhat similar and include such requirements as these:

  • Must give the company an original death certificate of the deceased insured. This will be kept by the insurer, so be sure to order multiple copies.
  • You will have to obtain and fill out the claim form. You can call your life insurer directly, call your agent, or both to order the form. Ask for assistance if you have any questions about filling it out.
  • Include all other required paperwork and mail the package to your insurer. Or, walk it into their office in person if you wish.

Note that if the death was a homicide, you will have to send your insurer the police report. And if there were multiple beneficiaries and one or more has passed away, you must send in a death certificate for each deceased beneficiary.

Don’t forget to sign the paperwork – only a beneficiary can do this. No one else can sign for you unless you are incapable of doing it yourself and have a legally appointed representative.

Life insurance companies try to pay out claims as fast as possible, but they do also have to investigate to counter possible fraud attempts. As fraud claims increase everyone’s premiums, everyone should be happy about insurers’ anti-fraud concern.

If your benefit is filed for within two years of taking out the policy (the “contestable period”), the insurer will verify all information given when the policy was applied for (such as answers to health questions.) But this is not looked at after the contestable period expires.

To better understand how the claims process works, or to shop for a new policy, contact Flagler County (FL) Insurance Agency today!