Our attorneys just resolved a 2m life insurance claim. If you’re filing a life insurance claim for the first time, you may find it overwhelming and confusing. It can be time-consuming, stressful, and has a probability of getting denied after months of waiting.
An insurance company can refuse to pay beneficiaries if there’s any error on the application, no matter how small. Some common mistakes can include:
- Incorrect contact information
- Missing information
- Wrong age
- Hidden pre-existing medical conditions
- Unpaid premiums
Steps To File a Life Insurance Claim
Here’s what you need to do to avoid any denials on your life insurance claims:
- Dig Through Policy Details
Before you begin the process, make sure you’re the listed beneficiary on the policy or if you’re entitled to collect the life insurance as the next of kin. Find the actual policy to reconfirm this. In most cases, policyholders who wish to alter their beneficiary either call their insurance provider or update their beneficiary information via an online form, but they often overlook saving a copy for the records.
- Obtain the Death Certificate
To claim funds from a life insurance policy, you need a copy of the individual’s death certificate signed by a registrar as an official proof of death. If the policyholder is missing but has not been declared legally dead, the insurance company will ask for a court order stating that the person is confirmed dead.
- Collect Important Documents
The claims process can be relatively quick to deal with if you’ve got the three parts of paperwork needed. These include a certified death certificate, the policy document, and the claim form. The policy document consists of all information about the life insurance policy, including the policy number and records. The claim form is where you’ll fill out the information about the policyholder.
- Contact the Life Insurance Company
Once you have acquired all the necessary paperwork, you can contact the insurance company to report the death and begin the claims process. You’ve got an unrestricted amount of time to submit your claim. As long as the policy was in effect at the time of your loved one’s death, you’re entitled to receive a death benefit at any point following their death. However, the quicker your claim is submitted, the faster you get the payout.
- Receive the Benefit
Two common ways beneficiaries can collect a life insurance claim are a lump-sum payment or an annuity. In lump-sum, you get the entire death benefit immediately without any taxes. However, in the annuity, the death benefit is invested, and you get an annual installment in return for a number of years. But you have to pay taxes on the investment gains.
The Last Note
Insurance companies can unfairly underpay or deny your claims, even if you know your rights and understand your policy well. Therefore, you must avoid any mistakes when filing the insurance claim to get the insurance payout you deserve. Contact a professional life insurance claims attorney to decrease your chances of getting the claim denied.