Around 54% of people have life insurance policies. The good news is that if you’re a beneficiary on someone’s life insurance policy, you can cash it in when they die.
However, filing a life insurance claim isn’t something most people often do. Therefore, many people wonder, “how does life insurance work after death?”
If your loved one left a life insurance policy behind with you as a beneficiary, you’d need to learn how to handle it. Fortunately, handling a life insurance claim isn’t overly complicated.
Here is a guide that might help you understand how this works.
Table of Contents
Find the Policy Information
The first thing you must do after losing a loved one is to look for their life insurance policy. Their policy states the insurance company name, policy number, phone number, amount, and beneficiary names.
If you can’t find the policy but know the insurance company that sold the policy, you can contact the insurance company to ask about it.
One vital thing to know is that the insurance company will only reveal details about the policy to the beneficiaries. While there are many types of life insurance policies, this is a standard with all types.
If you know that your loved one had a life insurance policy but can’t locate any details about it, you can contact their lawyer.
You may also want to look through your loved one’s safe or home to see if you can locate any documents that might help you determine who to contact about the life insurance policy.
Contact the Insurance Company
When you contact the insurance company, they will ask for some information. They’ll need to know who you are, the deceased person’s name, and other details.
Additionally, they’ll ask how the person died. The insurance company needs this information to process the claim.
Provide the Documents They Request
Additionally, the agent might ask for some documents. One thing they’ll ask for is documentation that proves your identity.
The other primary thing they’ll need is the death certificate, as this states the cause of death. A death certificate also proves that the person died.
Most life insurance policies have exclusions relating to the deaths they cover. Therefore, the insurance company must ensure that the cause of death doesn’t violate the contract terms.
You can get more info here if you’re wondering which deaths are covered by life insurance.
Wait for the Company to Process the Claim
Once the insurance agent has all the information they need, they’ll process the claim. If everything checks out, they’ll issue a check to the beneficiaries for the policy amount.
Learning how to claim life insurance proceeds is a common step after a loved one dies, and you should contact the insurance company as soon as possible after losing someone.
How Does Life Insurance Work After Death?
So, how does life insurance work after death? After reading this, you should have a grasp on what you must do to file a claim if you’re a beneficiary.
If you don’t have life insurance yet, you might consider buying a policy to protect your family.
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