Filing A Life Insurance Claim
Date Added: July 10, 2008 01:18:36 AM
What information should one keep?
You should record the following information for each individual life insurance policy:
Sometimes it may be because the policy copies have been lost to fire, flood, accidental discarding, etc.
For that reason, it is very important to store the records in at least two places where they are safe and easily accessible, so that there are no delays in processing the life insurance.
However, do not keep life insurance policies in a safe deposit box since it’s usually a requirement for the deposit box to be sealed temporarily upon the death of the owner, which can delay the settlement.
What information should one keep?
You should record the following information for each individual life insurance policy:
- The registered name of the life insurance company that issued the policy
- The city and state where the company that issued the policy is based
- The name and U.S. headquarters of the group, if the issuing company is part of a group of companies
- The life insurance policy number
- The date the life insurance policy was issued
- The death benefit amount
- The name, address and telephone number of the agent/broker who sold you the policy
- The type of life insurance policy issued
- The location where the original life insurance policy is kept
If your life insurance is under a group policy from your employer or from your union or trade association or other group you belong to (such as a college alumni association or an automobile club), you should record the following information:
- The registered name of the employer or group sponsoring the insurance
- The office or person to contact when the time comes to file a claim
- The certificate number (as compared to the policy number in an individual policy)
- The date when the insurance was started
- The death benefit amount
How To File A Claim
To begin the process:
- Pull out the copies of the death certificate.
- Call your insurance agent, who can help you fill out the necessary forms and act as an intermediary with the insurance company. You can contact the company directly if you don’t have an insurance agent or don’t know who the deceased's agent was.
- Submit the policy claim along with a certified copy of the death certificate from the funeral director.
It doesn’t usually take long for the settlement to be issued once you have submitted the claim. You must then determine how the proceeds will be distributed from the following options:
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Lump sum - the entire death benefit is disbursed in a single amount.
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Specific income provision – payments of both principal and interest are made on a predetermined schedule.
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Life income option - a guaranteed income for life is paid out, the amount of which depends on the death benefit, beneficiary’s gender and age at the time of the insured's death.
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Interest income option - the insurance company holds the proceeds and only pays you interest on them with the death benefit going to a secondary beneficiary upon your death.
Take a moment to review some tips on Buying Life Insurance.
