Carriers pay the large majority of life insurance claims without dispute, and most are paid within a few weeks of receiving the paperwork. Knowing the steps ahead of time makes a hard week a little easier.
What the beneficiary does
- Get certified copies of the death certificate. Ask the funeral home for several. Each carrier and account wants an original.
- Find the policy, or at least the carrier name and policy number. If you cannot, call us and we look it up.
- Call the carrier's claims line or your agent. The carrier sends a claim form.
- Return the completed form with a death certificate and a copy of the beneficiary's ID.
What the carrier checks
- That the policy was in force: premiums paid, no lapse.
- That the claimant is the named beneficiary.
- Cause of death, from the certificate.
- If the death is within the first two years of the policy, the application is reviewed. This is the contestability period.
How long it takes
For a policy older than two years with a clear certificate, payment commonly arrives within two to four weeks of the carrier receiving a complete claim. Many carriers pay interest from the date of death if they take longer. Most states also set a deadline after which interest is required.
The two things that slow a claim
- Death inside the contestability period. The carrier can request medical records and compare them with the application. Honest applications are paid; the review just takes longer, often 30 to 60 days.
- Graded or guaranteed issue policies. If death from natural causes occurs during the waiting period, usually two years, the benefit is the premiums paid plus interest, not the face amount. Accidental death is paid in full from day one. We explain this before anyone buys one.
How the money is paid
A lump sum by check or direct deposit is standard. Life insurance death benefits are generally not subject to income tax. Some carriers offer a retained-asset account instead of a check; a beneficiary can always ask for the lump sum.
This guide is general information, not advice about a specific policy. Benefits, enrollment rules, and costs vary by state, carrier, and year. Confirm details for your situation with a licensed agent.
