Life Insurance Claim - How Soon Can You Claim After a Policy Holder's Death?

It can be devastating having to deal with life insurance claims after the death of a loved one. But it may be necessary to proceed quickly, so funds are available to cover funeral expenses, outstanding financial commitments or to provide income. So its good to know how to go about it.

How to make a claim

It is not difficult to make a claim provided you have all the necessary paperwork or information available. So the first step is to locate the actual policy and if possible the name of the insurance agent used by the policy holder. If you cannot find either of these then write to the American Council of Life Insurance, 1001 Pennsylvania Avenue, NW, Washington, DC 20004=2599 and they will attempt to locate the lost policy for you so you can make your life policy claim.

Once you have the policy, contact the insurance broker and ask him to act for you in your dealings with the insurers in relation to your life policy claim. He or she will also help you fill out the necessary forms. One piece of paper work you will definitely require is a certified copy of a death certificate from a Funeral Director. If you are making claims to a number of insurance companies then you will need to have a certified death certificate for each claim.

You then submit the death certificate with a life insurance claim form and if it is available, the number of the policy. You should then receive a settlement fairly quickly. And there are a number of ways in which you can receive that settlement.

Different ways of getting life policy claim settlements

Insurers offer different ways of receiving life policy claim settlements. The most usual form is a lump sum. This helps in paying funeral expenses and other immediate financial obligations. However some other form of settlement may be advantageous to you.

You might want to consider an interest income option when you receive the settlement on your life insurance claim. This means the insurance company keeps the money but pays you the interest for a specific period. Or you could opt for life income option which is similar to an annuity where you are guaranteed an income for life.

Can a life insurance claim be denied?

Are life policy claims ever denied? Yes they are. The most usual reason is what is called a 'material representation' A material representation is any statement in the original application which is untrue in a way which invalidates the policy.

If a life policy holder misrepresented his or her situation it will usually be in one of the following ways. They may have lied about their occupation, their health, their age, their employment history or as insurers term it, their 'slow suicide in the form of a smoking addiction'. If the policy owner did lie about any one of these things, insurers can claim the policy was issued under false pretenses and deny your life policy claim. When you are getting a quote for a policy from a reputable life insurance company always ask what the claim procedure is and what might invalidate a claim.