When someone passes away, the last thing their family wants to deal with is paperwork and delays. Unfortunately, life insurance payouts do not always arrive quickly. Some families wait weeks or even months for the money, and in certain cases, the claim may be denied altogether. Knowing how the process works can help you avoid common pitfalls and take the right steps to receive the benefit as fast as possible. If you need a Montana life insurance lawyer call us.
This guide explains the typical payout timeline, why delays happen, and how to prevent complications before they start.
How Long Does It Take to Get a Life Insurance Payout?
Life insurance benefits are usually paid within thirty days of submitting a completed claim. Some families receive the money in as little as two weeks, while others are left waiting due to paperwork issues or additional review.
For example, a family in New Jersey submitted all documents immediately after the passing of their father. The insurer paid the full benefit within fifteen business days. In another case, a woman in Florida waited over two months because the death certificate listed an unclear cause of death and the insurer requested more records from the coroner’s office.
What Can Delay a Life Insurance Payout?
There are several common reasons why payouts take longer than expected.
Incomplete paperwork
If the death certificate is not finalized or a form is missing, the insurer will not move forward. One claim was delayed for weeks simply because the certificate had not been certified by the issuing office.
Contest period review
If the insured person died within two years of starting the policy, the insurer may review the application for misstatements. This does not mean the claim will be denied, but it can cause significant delays. In one case, a man died eighteen months after buying a policy, and the insurer took forty five days to confirm that all medical information had been properly disclosed.
Unusual circumstances
When the death involves an accident, suicide, or suspected foul play, the insurer may request additional documents such as a police report, autopsy findings, or toxicology results. These records can take weeks to obtain, especially if the case is under investigation.
Disputed beneficiaries
If two people claim to be the rightful beneficiary, or if the beneficiary was changed shortly before death, the insurer may file an interpleader and ask the court to decide. This can freeze the payout for several months.
How to Get Paid Faster
To avoid delays, follow these steps as soon as possible after the death occurs.
Notify the insurer right away
Contact the insurance company and let them know the policyholder has passed. Ask what documents are needed and request a claim packet if one is not available online.
Submit all documents at once
Gather everything before filing. You will usually need:
A certified copy of the death certificate
A completed claim form
The original policy if available
Additional reports if the death was accidental, violent, or sudden
For example, in a drowning case, the family submitted both the police report and the coroner’s findings upfront. This avoided a follow-up request and sped up the claim process.
Stay in contact
Once the claim is submitted, follow up every week or two. Ask for confirmation that the documents have been received and request an update on the review status. If something is missing, you can provide it quickly instead of learning about the delay weeks later.
What If the Insurer Is Taking Too Long?
If the company is delaying payment without a clear reason, you have options. Start by asking for a written explanation. If they mention the contest period, request a copy of the investigation criteria. If they say the documents are incomplete, confirm exactly what is missing.
In one case, a widow waited over ninety days with no payout. The insurer claimed the policy was under review but gave no details. After she hired a life insurance attorney, the company released the full benefit within three weeks.
How a Life Insurance Lawyer Can Help
When a claim is delayed or denied, it often takes legal pressure to get results. A lawyer who specializes in life insurance can help by:
Reviewing the policy terms
Identifying whether the delay is valid or unreasonable
Communicating directly with the insurer
Filing a complaint or lawsuit if needed
One family in California had their claim denied because the insurer said the policy had lapsed due to nonpayment. The lawyer discovered the company had mailed the lapse notice to an outdated address. The claim was reinstated, and the benefit was paid in full.