Losing someone close to you can strain a family's finances. And the last thing you should be worrying about while grieving is whether you'll be receiving the life insurance payout on time or if you will be receiving anything at all. A delayed payout can put the beneficiary in financial difficulty and can be stressful for an already mourning family member.
Benefits from life insurance are typically paid out upon the insured's demise, following the beneficiary filing a claim with the insurance company and submitting all the required paperwork, including a death certificate copy.
The speed with which you file your claim, submit the necessary documentation, the legislation around the policy, and the insurer's processing time all affect how quickly you will receive the payout. In most circumstances, insurers are required to settle claims within 15-30 days after receiving all the relevant documentation, unless the claim is challenged. So, the quicker your claim is submitted, the quicker you will get paid.
Insurance companies like to delay for months or years based on the contestable period also known as the contestability period, which is why a life insurance attorney is needed.
After the death of the insured, the insurance provider should be notified as promptly as possible. The beneficiary will be contacted by the insurance representative, who will request certain paperwork. If the required paperwork is in place, there is a good chance that the insurance provider will pay sooner. These documents should be submitted swiftly if you want to accelerate the claim settlement. A death certificate copy will be required from the beneficiary. Claims are often delayed if the insurance company does not receive a death certificate copy.
You can get a certified death certificate copy of the insured either from the jurisdiction where they passed away or at the nursing home or hospital where they were taken care of.
You may have to provide the original life insurance policy, a filled claim form, to the life insurance provider. They may also request for other supporting materials. For instance, if an insured's death occurred due to an accident or a homicide, they may require a police report. Other documents include a coroner's report, toxicology report, or an autopsy report, and anything else based on the situation surrounding the death.
Benefits from life insurance should be given right away. Consult a life insurance lawyer who is familiar with your situation and who will be sympathetic to your financial struggles due to the death of a close one. We're here to assist you in determining what step you should take next, from the claim submission to challenging a denied or delayed claim to lawsuit filing.