Collecting On Life Insurance Claims
Collecting on a life insurance claim is never anything but a grim job, because it begins with someone’s death. However, life insurance was created for a reason, and that reason is to help the survivors go on with their lives by providing financial assistance. Many people run into problems from the very beginning because they have no real idea about collecting on a life insurance claim.
Filing The Claim
The claims process should begin when the beneficiary has received the official death certificate from the coroner or funeral director. The life insurance company needs to be notified immediately; normally they provide a toll-free number which is accessible 24/7, and some companies may offer an online service for this purpose.
The company will most likely want a copy of the death certificate faxed or emailed to them right away so they can begin the claim process. Recent years have seen the claims process greatly streamlined and automated, but it still can take up to months to complete.
Verification of Death and Benefits
The beneficiary will need to fill out various papers, detailing all the information which the insurer requires in order to show that the death occurred under circumstances covered by the policy. Normally a few forms and phone calls will be sufficient, but if the death was unusual or suspicious in any way, the insurer will frequently open their own investigation.
If they find everything is as it should be, they will approve the claim, including ones filed within the contestability period. Check and compare life insurance quotes and policies for more information on how different companies approach this subject.
Contestability Periods
An insurance investigation is almost a certainty if the policyholder died within the contestability period stipulated by the policy. A contestability period is the time period after the life insurance policy was bought during which the insurance company monitors carefully for fraud. There have been many instances of terminally ill consumers purchasing life insurance and hiding that fact in order to gain benefits—which is fraud.
False claims and payouts raise the premiums for all insurance buyers, so it is in everyone’s best interests to be completely honest. On average, the contestability period is two years for term life insurance and whole life insurance plans.
Life Insurance Quotes
There is nothing fun about collecting on a life insurance policy even when that money comes as a real relief at a stressful time. Filing and processing the claim is a long process requiring patience and honesty. Once complete, the beneficiary can go on with their life as the decedent would have wanted.
Life insurance is there to provide for the future, and The Life Insurance Quote offers free, instant life insurance quotes online to help consumers find and compare the best, affordable life insurance available today. By entering your 5-digit zip code and getting a cheap life insurance quote, we help you make sure you are getting the best policy for your needs.
