Strategies for Claiming Benefits from Life Insurance Policies

Life insurance is one of the most popular long-term financial planning strategies, but the process of claiming benefits can be potentially confusing without guidance. The key to claiming life insurance benefits is to understand the fundamental nature of how payouts are determined in the first place. Knowing how quickly your life insurance benefits will be disbursed depends on the nature in which the estate has been established and the accuracy of the documentation. The following are some of the most important aspect of the process to understand about the carrier approval process.

Filing a claim

The beneficiary must file a death claim after the insurer has passed away, and this can only be done with the submission of a official death certificate. In the majority of states, the death certificate must be submitted within 30 calendar days of the time of death of the insured. In the event that there is more than one beneficiary named in the policy, every beneficiary will have to submit their own individual claim form.

When the death certificate has been submitted and the claim is been filed, it is at the discretion of the carrier to approve it, deny, or request further information. If benefits are approved, it may take anywhere from 30 to 60 more calendar days following the date of the claim for the funds to be disbursed. While the usual period time is between 30 and 60 days, in truth, there is no set time.

Determining policy type

It is important to determine exactly what kind of policy was claimed in the first place. Depending on the nature of the policy in question, the process declaiming the benefits may be affected accordingly. Term, variable life and the whole life insurance policies all come with their own unique stipulations that affect the process of being able to claim the benefits.

Credit insurance

Make sure to confirm whether or not there was any credit insurance involved. Credit card balances that reflect debts owed to major purchases or mortgage payments can factor in as determinants and whether or not benefits can be claimed.

Potential delays

Depending on several extenuating circumstances, there may be delays in the payouts of anywhere between 6 to 12 months; this is usually in the circumstance in which the insured has passed away within one or two years of establishing the policy. In order to ensure that there's no fraud, there may be a contestability clause enacted that allows the carrier to investigate and confirm that the establishment of the policy was legitimate.

Putting the odds in your favor

In order to make sure that you have the best chance at filing your claim successfully, be sure to contact the life insurance carrier as soon as possible after the insured has passed. Save all of the relevant paperwork as soon as possible so that they're prepared to be presented to the carrier representative.

In order to obtain all of the necessary paperwork that you need for the carrier representative to sign off on your claim, you will want to inquire with the county that the insured filed their policy in. In the event that the insured passed away in a hospital, then there is a chance that the hospital may have a certificate that you need in order to give representative proof of legitimacy.


The key to minimizing the chance of running into any delays or denials is to make sure that every bit of information in the insured's documentation is accurate as possible. If any information is inaccurate or ambiguous, then the life insurance carrier could motion to deny the claim. One of the best measures that you can take to ensure that you have the best chance of getting the benefits is to commission a professional life insurance agent to organize the vital documents.

Because a life insurance policy is a contract between the buyer and seller, the executor is not in charge of it. It will be up to you, the beneficiary, to negotiate with the carrier and enact the receipt of the benefits; however, there are circumstances under which the executor may step in to help the benefits be claimed more easily.

Featured Articles

Recovery Of Unpaid Wages

The Department of Labor has a department called the Wage and Hour Division. This department is responsible for dealing with wage violations. They make sure that people are given the back pay that they are owed. The difference between the amount one is...

Read More

Government Assistance For Utilities And Weatherization

LIHEAP stands for Low Income Energy Assistance Program. It is a federal program that helps people pay for cooling and heating in their home. It also helps people make their homes more energy efficient. LIHEAP helps you ...

Read More

Healthcare Grants

Health care grants can cover various program and equipment needs and are awarded by a variety of entities including: • The federal government • State and city governments • Universities • Corporations • Private donors If you are interested in app...

Read More

Home And Housing Grants

You have probably heard about free housing grants and wondered if they really exist. The answer to that question is yes and no. The answer to that question is yes and no. There are grant programs available for housing. There are also rental and hous...

Read More