After a loved one has passed away, your focus should be on family, not money. Luckily, filing an insurance claim can ease some of the financial stress you may be experiencing. With a little preparation, life insurance beneficiaries can quickly navigate the claims process and get back to what’s most important.
1. Collect Important Documents
After a loved one has passed, making sure your paperwork is in order will help expedite procedures. It’s easy to obtain a certified death certificate, policy document, and claims form. Be sure to fill each out properly to avoid snags.
2. Contact the Insurance Company
Once everything is in order, get in touch with the insurance company to file your claim. There’s no time limit on filing this paperwork, but quick action means quick returns.
3. Wait For Payment
At this point, there isn’t much to do but wait. Paperwork is typically processed and paid out within a few days, but occasionally takes up to 60 days. Again, ensure all paperwork is properly filled out and filed to reduce the time involved in this step.
4. Receive Your Benefit
Once the claim is approved, you’ll have two options for payment: one lump sum or an annuity. A lump sum is great when money is needed immediately, but an annuity can help provide additional cash over time. Check your state’s tax laws on each to weigh your options.
In times of strife, life insurance claims should be the least of your worries. Follow these steps to simplify the process.