Documents you Need to Claim a Death Benefit
There are possibly three documents to claim the insurance payback.
Death Certificate
The underwriter will essential a qualified copy of the policyholder’s demise certificate. This evidence of demise safeguards that strategies are being requested lawfully and aids avoid con.
Policy Document
The policy document has all the pertinent information about the life insurance policy: the term, the death benefit amount, policyholder details, and so on. The insurer will cross-reference this with their records to make sure you’re making a claim on the correct policy. Insurance Company London let people know how they can ask for an upright claim.
Claim form
Also known as a “request for benefits,” you’ll use a claim form to fill out information regarding the policyholder, including things like the policy number and cause of death. You’ll also fill out information about yourself as the named beneficiary, including your relationship to the policy owner and how you would like to be paid once the carrier finishes processing your claim. This form will be sent, along with the death certificate and policy document, back to the insurer, and they’ll take it from there.
What the Insurance Company Does
Once you take care of things on your end, the insurance company will process your claim. The first thing they’ll do is performs a few basic checks. They’ll make sure that you are, in fact, the beneficiary assigned to the policy so that they aren’t paying out to the wrong person.
They’ll also make sure the policy in question is still in force, or active; you can only make a claim on a policy that’s currently in force. Policies lapse if:
- The policy owner stopped paying premiums, or
- The policy is for term life insurance and the term has ended.
Depending on how long it takes to process a claim, the insurer may pay out a death benefit within a few days, but it can take as long as 30 to 60 days. Insurers want to pay out as quickly as they can, though, to avoid interest charges on unpaid death benefits.
Why a Claim Might be Rejected
Although insurers usually pay out claims, in some cases filing a claim will result in the rejection of the claim and termination of the policy. When that happens, the insurer will typically reimburse the premiums paid to the beneficiary or the deceased’s estate, but the death benefit will not be paid.
Contestability
Most life insurance policies have what is called a contestability period. This typically lasts two years from when the policy goes into effect and exists to protect the insurance company from fraud. It allows the insurer to make sure the information provided to them during the application process is true and wasn’t misrepresented in favor of the policyholder.
Suicide
Insurance policies will also have a suicide clause that states that a death benefit will not be paid out if the decedent commits suicide within the first two years of purchasing the policy.
Homicide
If the deceased was killed, the insurance company will wait until any beneficiaries are cleared of wrongdoing before paying the death benefit.
