Tips On How To Make Life Insurance Claims

Life insurance claims can be paid quickly if there are no complications. In fact one source states 91% of life insurance claims are paid within five working days.

When an insured person dies, it is the responsibility of the beneficiary to file life insurance claims to collect any death benefits. It is important to get the claims process under way as soon as possible because most policies have a time limit to file a claim.

Family members often don't file a life insurance claim because they don't even know that the benefits exist. A search for life insurance policies should be included in winding up any estate.

You may be able to track down a policy by checking the person's banking records of payments made to any insurance company. You can check with the agent for other insurance policies such as car or house insurance to see if there was also life insurance. Or you could check with employers about any group policies that may be in effect or to see if there are any payroll deductions for individual coverage.

To get started, the beneficiary should ask the agent or company for a claim form. They will need the name of the insured, the policy number (and the policy itself if available) and a certified copy of the death certificate. The statement of claim should include the full name and address of the beneficiary or the person making the claim.

Once proof of the death of the insured individual reaches the insurance company's claims department, they begin a process of verification. They make sure there actually is a policy in effect and that all premiums have been paid. They make sure the right person is identified as the beneficiary. They check the policy for any limiting clauses, including loans against the cash value of the policy. They verify that all the information in the policy is accurate.

In most situations life insurance claims are paid without dispute but the life insurance company will review each claim carefully before paying out their money and some life insurance claims are denied or delayed.

The company could refuse to pay a claim because the insured committed fraud when applying for the policy or the insured committed suicide.

After fraud on the part of the policy holder, the most common reason life insurers use to deny claims is that there was a "material misrepresentation" on the life insurance application.

Just the fact that a claim is made in the first two years the policy is in force will lead to closer scrutiny. If the beneficiary intentionally killed the insured person, the company can refuse to pay the death benefit no matter how long the policy has been in effect.

High life insurance claims are also more likely to be examined very closely.

There can be complications as a result of divorce. If you are an ex-spouse, you will need to know the law in your area to determine whether or not your status as a beneficiary may have changed. Even if you were named beneficiary prior to your divorce, if the insurance is not part of the divorce settlement, you may be out of luck. If there are conflicting claims, the company may turn the money over to a court and the court will hold the money until it decides who is entitled to receive the benefit .

Having done all its investigation, the company will either pay the claim or notify the beneficiary if there is a problem with the claim. If there are complications in your situation, it is important that you seek help from those who are knowledgeable and experienced concerning life insurance claims.

About the author: E. MacLean is an enthusiastic researcher who believes an educated consumer makes better buying decisions. The research is provided to help you begin your education - be sure to get all your questions answered before making your decision or purchase. Life Insurance Providers (www.life-insurance-providers.com)