When a loved one dies, the list of to-dos can seem overwhelming – especially when you’re in the midst of grieving. Filing a claim under a life insurance policy can help ease some of the stress by taking care of any financial worries, just the way your loved one would have wanted it.

Filing a claim is simple, and insurance companies pay claims quickly in most cases. As a beneficiary, here’s what you need to know about notifying life insurance companies of a death when a loved one passes away.

How does a beneficiary file a claim for life insurance?

Wondering how to claim life insurance? It’s important to know that while claiming payment is straightforward, it’s not automatic.

If your partner, parent, or someone else names you as the beneficiary on their life insurance policy, you have a right to claim the life insurance death benefit (i.e., a cash payout) if they die while the policy is active. Keep in mind that the life insurance company won’t send you a check in the mail unprompted, however. As the beneficiary of the policy, it’s up to you to let them know what’s happened and start the process.

There are a few steps to take when notifying the insurer of the life insurance claim:

• Locate the policy. Track down a physical or electronic copy of the person’s policy and check the coverage amount. You should also check the term length if it’s term coverage to make sure it’s still active. Hopefully, your loved one told you where to find the paperwork. If you can’t locate it, though, you can contact their insurance company and see if they can send you a copy. If you don’t know the life insurance company that issued the policy, you can try a locator service. 
• Get a copy of the death certificate. You’ll need a copy of the death certificate to start the claim. Depending on where the person died, you can typically get one from the funeral home or a medical professional who confirmed the death. You can also request one from your vital records office. While you’re at it, consider requesting a few extra copies of the death certificate, just in case you need them later. 
• Contact the life insurance company. Reach out to the insurance company to start the process. They’ll likely have you submit a claim form and provide other documentation, such as proof that you’re the beneficiary of the policy. Being prepared beforehand will help smooth out the process for you. If you have a policy with Fidelity Life, you can find the claim form for your state on our website. You can submit the appropriate form along with a certified copy of the death certificate. Need more assistance? Call us at 800.369.3660. 
• Wait for the claim to be processed. Once you submit your information, the insurance company checks on a few things, including confirming that you are the insurance beneficiary and that the policy was active at the time of the death. Payment typically takes just a few days, but can take longer if any questions come up during this time. The insurance company has to pay interest on the money the longer they hold it, so it’s in their best interest – and yours – to pay it out promptly.

How is life insurance paid out to beneficiaries?

If you’re the beneficiary of a life insurance policy, payment typically comes in a lump sum. That means if your loved one had a policy for $1 million, you’ll receive a payment for the full $1 million, typically within a few days (although sometimes it could take longer). You may be able to choose how it’s paid, like direct deposit or check.

You can sometimes choose to accept payments from a life insurance claim in installments over a period of time. With this option, the life insurance company will generally hold the money and send you a series of payments over a designated period of time. If you choose installments, you might be entitled to interest payments from the insurer as well.

If the person had multiple beneficiaries, payments will be split between them, as specified in the policy.

What if my claim gets rejected?

This is not common, but it can happen. It’s typically because something turns up that the deceased person didn’t disclose on the application. For example, if your loved one didn’t tell the insurance company you had a history of heart issues, and then they died of a heart attack, the insurer may contest your claim.

Certain policies also have exclusions for certain types of deaths, such as suicide and homicide. If the person stopped paying premiums, that can also cause a policy to lapse, which means the beneficiary is not entitled to the death benefit payout.

If your claim is denied, reach out to the insurance company to find out why it happened. Life insurance is designed to provide peace of mind for people and their loved ones, and insurance companies ultimately want to give their customers and their families that sense of financial security. If the denial happened because of an error, your insurance company can work with you to make it right.

How long do you have to claim life insurance?

Has it been a while since your loved one died, or did you just come across a policy stashed away in a desk drawer? There’s no time limit on claiming life insurance after a loved one’s death. As long as the policy was in force (i.e., active), you’re entitled to the payment. If a policy turns up later that you didn’t know about, it’s still worth reaching out to file a claim.

A word of advice: if you’re the one buying life insurance, it’s always best to tell your family about any policies you’ve purchased, while you still can. That way, you can avoid unnecessary stress down the road for your own family.

Claiming peace of mind

Losing a loved one is difficult enough, which is why life insurance is there to make sure you’re supported financially during the grieving process and beyond.

By knowing the basic steps to take when you go to file an insurance claim, you can ease financial stresses during an emotional time – the way your loved one would have wanted.     .

Still have questions? Get in touch with one of our agents and we’ll be happy to help.

At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.