Conversations on life insurance policy sometimes get awkward. But it is crucial to have this conversation, especially if you in the list as the beneficiary on your spouse or any relative’s policy. Yes, even thinking about claiming life insurance spoils your mood, but you definitely should know how to do it to avoid any frustrating situations.
You won’t believe there are billions of dollars of unclaimed insurance left, as people either don’t know the right process of the claim, or they don’t know they are listed as beneficiaries in someone’s list. Thus, getting prior information and the right documents can assist in the smooth process of an insurance claim.
What Should You Have to File a Claim?
Before you file for a death insurance claim, you must have a few documents and steps to start the process.
- You must know your beneficiary status: The first step to receive the policy benefit from filing the insurance claim is to know whether you are listed as the policy’s beneficiary. For this, your policyholder must list you as a beneficiary in advance.
- You must know about the insurance provider and policy number: This is quite simple yet important to know before filing the claim, along with the policy number for reference. Having this information in advance will save time spent on calling insurance companies or locating policy numbers. But if you can’t find an insurance company, contact your state’s Department of Insurance to gather information.
- Communicate to an insurance agent before filing for the claim: When you know about your insurance agent, communicate with him/her before filing for the claim about what documents are needed and how to prepare them. Furthermore, you can discuss the process of claiming and who might help you in the whole process.
- Make a copy of the death certificate: It’s a good thought to have copies of different documents such as death certificates or bank accounts, as you will need those copies at various claim processes.
How Can I File a Claim?
Step 1: Prepare the documents.
Once you know the documents needed for filing a claim, organize the documents. And make sure you have them at hand when you contact the insurance provider to file a claim.
Step 2: Contact an insurance agent.
You must first contact the policy’s agent to discuss the required documents and information related to filing a claim. However, also make sure to ask:
- If a death certificate is required with a death claim.
- Are there any other necessary forms to fill out?
- Where to submit forms when completed or if it requires online submission?
- What are the options available for claim payment?
If you feel overwhelmed with the paperwork when your loved one passed off, ask your insurance agent to assist you in sorting paperwork.
Step 3: Submit forms and documents.
Once you fill all the forms and gather documents, submit those to your policy agent. It might take some time to review everything. So, make sure you ask about the timeline to know when to expect to hear from them.
How Can You Know if the Claim Will Get Approved?
The best way to know about a life insurance claim’s approval is through the term and conditions. First, the policy holder’s death had occurred when the policy was active. For many policies, the cause of death also matters, as insurance agencies have specific terms for each category’s coverage. For instance, many insurance companies won’t pay anything in the initial two years of the policy if the cause of death is suicide.
What Is the Method of Payment?
Usually, there are two payment methods to receive your death claim; lump sum amount and instalments. But make sure to ask your insurance agent about the available payment options.
Lump-Sum Amount: The insurance company might offer you a check or a draft account from where you can withdraw funds until the whole funds are withdrawn.
Instalments: The other option is that the insurance company pays your funds in instalments. Different insurance companies offer different instalment plans. It depends on which plan best matches your needs.