What to know about the life insurance claim process

Following the loss of a loved one, life insurance benefits can often be an important lifeline for the family left behind. It can feel overwhelming for a beneficiary to know what to do about filing a claim and receiving the death benefit. Since the benefits from a policy are not paid out automatically, a beneficiary must file a death claim to receive the payout. Thankfully, the claims process is usually straightforward and can be completed by following some basic steps. Here’s how you can help ensure a smoother life insurance claims process.

How do you find out if someone has life insurance?

If a loved one passes away and family members are unsure if that person had a life insurance policy, a few steps can be taken to find out more information and initiate the claim process if they are the beneficiary.

Check personal documents

If you have access to a person’s financial records or files, you may be able to find information about life insurance policies.

Contact insurance agent or company

If the person’s insurance agent or company is known, it may be possible to inquire about the existence of a life insurance policy. Having proof of your relationship is commonly required to obtain this information.

Review will or estate plan

Life insurance policies are often included in an individual's estate planning documents, such as a will or trust. If you have access to these documents or are involved in the person's estate planning process, you may find information about life insurance.

Ask family members or close contacts

If appropriate, consider asking the person's family, close friends, or trusted contacts if they know of any life insurance policies.

Who gets a life insurance payout?

Part of the life insurance purchasing process is designating one or more beneficiaries. Choosing a beneficiary is an important decision, as the person or organization will file a claim and receive the death benefit if you pass away. If there are multiple primary beneficiaries, the payout will be distributed equally or based upon a percentage that is determined when the policy was purchased.

How to claim life insurance

Most insurance companies provide useful resources and a claim packet that outlines all the steps of the claim process and allows a beneficiary to file a claim online or through a paper claims process. The basic steps to follow when filing a claim include:

Contact the insurance company or your financial professional

If you need assistance, the insurance company or a financial professional can help explain the claim process and what is required. If there is a copy of the life insurance policy, check the company name and/or agent listed on the paperwork.

Get a copy of the death certificate

Most insurance companies require an original certified death certificate issued by the state in which the deceased passed away, with the cause and manner of death listed. A beneficiary must obtain a certified copy of the certificate, not a photocopy. The funeral director handling the final arrangements can usually help get the needed copies.

Complete the claimant’s statement

Each beneficiary must complete and submit a signed claimant’s statement, typically included in the claims packet. Most forms ask for the policy number, basic information about the deceased, the claimant’s information, and settlement options, which is how a beneficiary wishes to receive the payout.

Follow special instructions and additional requirements

Other forms or documents may be required depending on the policy and named beneficiaries. Speaking to an agent or the Claims Department at the insurance company can help determine if additional information is required to complete the claims process.

How to collect a death benefit

When filling out the claimant’s statement form, it’s common to see a section that asks how the beneficiary wishes to receive the life insurance payout. Payout options commonly include a lump sum paid all at once or installments paid over time. Lump sum payments give instant access to the life insurance benefit in the form of a check or bank deposit, while installments spread payments out over time. Sometimes, an interest option may be chosen where the death benefit is left on deposit to accrue interest, or a life income option where the insurance payout is converted to an annuity and the beneficiary receives guaranteed payments for the rest of their life.

How long does a life insurance claim take?

After a claim is submitted and the insurance company reviews it, a payout is typically issued in a timeframe of two weeks to 60 days. Be sure to review everything carefully before submitting since missing paperwork or information on the claim form can slow down the process. After the claim is submitted, the insurer will review the claim form, death certificate, and any additional documentation. You will likely hear from the insurance company if further information is needed or if there is an issue with the claim. The amount of time for life insurance benefits to be paid can be influenced by these factors:

•  The length of time following the death that the claim was filed
•  If all required documentation was included
•  The insured’s cause of death
•  State laws regarding life insurance payouts

Review the claims packet carefully or speak to the insurer directly since each company has different rules, and you may have questions about your situation. The status of a claim can often be checked online or by calling the company. Many insurance companies recognize this time's difficulty and want to make the claims process as smooth and simple as possible.

Why would a life insurance claim be denied?

As long as all the steps of the claim process are followed and the necessary documentation is provided, life insurance benefits are usually paid out in a timely manner. In the instance a claim is denied, there may have been false information provided on the original application, the insured may have stopped paying their premiums and coverage had ended, or the cause of death did not fall within the rules of the policy. If you receive a letter indicating that the claim has been denied, you can contact the insurer to receive further information and learn the next steps.

Navigating the claim process

Paperwork is probably the last thing anyone wants to worry about following the death of a loved one, but the sooner the claims process is started, the sooner the benefit can be received. Especially if financial assistance is needed to cover final expenses or other costs, it can be helpful to get things in order as soon as possible. If you need assistance navigating the claims process, reach out to the agent on the policy or the insurance company’s support team, who can help ease your worries and ensure you get the benefits you deserve.

To report death and file a claim with Midland National, visit the Life Claims Forms page or call toll-free at 800-733-2524.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.

B4-MN-8-24