Claiming Life Insurance Benefits

Claiming Life Insurance benefits

Sounds simple, Life insurance pays benefits to the beneficiary listed on the life insurance policy in case of death of the policyholder. But the payments are not issued automatically when life insurance companies are not informed immediately when their policyholders die. Just like in any other insurance, you have to file a claim if you wish to collect the benefits.

Intimate your insurance representative or broker. He or she can help you fill out the necessary forms and act as an intermediary with the insurance company. Although your insurance professional can assist you with the details of filing your claim, you will find it helpful if you keep all the policy papers ready beforehand.

If you do not have an insurance professional or do not know who the deceased's representative was, you can directly deal with the insurance company. Call or write to its nearest office to ask about the procedure that should be followed. As a beneficiary, if you need to collect the benefits of a life insurance policy, filling out paperwork is probably the last thing on your mind. Life insurance companies and life insurance brokers try to make the process as easy as possible, however there are certain pieces of information and documents that are required to make the claim. You will need to provide to the life insurance company or life insurance representative: ·An original, or certified copy of the policyholder's death certificate · Proof of identity as the beneficiary ·A familiarity with the policy so that you are aware of your payment choices Generally the life insurance claim process is very quick. You complete a proof of death form and attach the death certificate. If there is more than one beneficiary for the life insurance policy, you will each need to fill out your own forms as part of the same claim. Once the claim is submitted, you should receive a settlement in fairly short order. You may receive a lump sum or installments, according to your choice or the policy owner's prior decision, or you may be able to leave the proceeds on deposit. The money will accrue interest until it is withdrawn. The insurance company will handle the settlement as instructed. The only thing that can really hold up a life insurance claim is if the death certificate is a copy or is invalid

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