How to File a Life Insurance Claim: A Step-by-Step Guide for Beneficiaries

Short answer: To file a life insurance claim, find the policy, contact the insurance company or agent to report the death, and send the company’s claim form with a copy of the death certificate. That’s the process Washington’s Office of the Insurance Commissioner (OIC) describes for beneficiaries. Alaska’s Division of Insurance says agents who work for a funeral home commonly sell burial policies “in the form of a whole life insurance policy,” so ask the insurer whether its claim steps differ for a final expense policy.

Step-by-step: how to file a life insurance claim

1. Find the policy. The NAIC says beneficiaries should know “the name of the insurer, the benefit amount, the policy number, and where the policy is stored.” If you don’t, see the next section.
2. Notify the company. Washington’s OIC says, “If you’re listed as a beneficiary on someone’s life insurance policy, you should contact the policyholder’s insurer or agent and notify them of the death.”
3. Get the claim form. The OIC says, “If there’s more than one beneficiary, each person needs to complete a claim form.”
4. Send a copy of the death certificate. “You’ll need to submit a copy of the death certificate with your claim,” according to the OIC. Ask the company whether it wants a certified copy and what else it needs.
5. Keep copies of everything. The OIC advises: “Keep copies of all your documents and follow the policy’s claims process for a quick payout.”
6. Choose how to be paid. The NAIC says a beneficiary “may have options for how to receive the death benefit,” including “a single settlement check” or a retained asset account. It suggests consulting “a tax professional about any potential tax consequences.”

How do I find out if someone had life insurance?

Washington’s OIC suggests these places to look:

• “Search through the person’s financial records to find payments to the insurer.”
• “Look through old mail for statements or billing reminders from the insurer.”
• “Ask their auto or home insurer if they bought life insurance from them.”
• “Ask their last employer if they had a policy through their job.”
• “Ask their bank if they had a safe deposit box or bought a policy from them.”

The OIC also notes that “Someone may have sent the benefits to their unclaimed property section,” so it suggests checking the state’s unclaimed property office and those of other states where the person lived.

Using the NAIC Life Insurance Policy Locator

The National Association of Insurance Commissioners (NAIC) offers “a free online tool that helps consumers find their deceased loved one’s life insurance policies and annuity contracts.” The NAIC says requests are stored in “a secure, encrypted database where participating life insurance and annuity companies can access the information through a secure portal.”

To submit a search, you enter the deceased person’s information, including their Social Security number, legal name, date of birth and date of death, plus your own contact information and relationship to the deceased. Here’s what happens next, according to the NAIC:

• “If a policy is found and you are the beneficiary, the life insurance or annuity company will contact you directly.”
• “If no policy is found or you are not the beneficiary, you will not be contacted.”

Who can file the claim?

The person named as beneficiary files the claim. The Texas Department of Insurance (TDI) says a life insurance company “will make payments after your death to the person you name in your policy,” and that “You can name more than one beneficiary.” Here’s how a few common situations work, according to state regulators and the NAIC:

If the money goes to the estate, TDI says “Your heirs might have to pay taxes on money they get from your estate.”

Can final expense insurance pay the funeral home directly?

It depends on the kind of policy. Washington’s OIC says that with standard funeral insurance, “your death benefits go to the person you chose as your beneficiary,” who “can use those benefits in any way, including paying for your funeral, medical bills, legal costs or debt you owe.” A pre-need plan is different: “Unlike standard funeral insurance, it pays the funeral provider you choose.”

If the funeral is happening before the claim pays, ask the funeral home and the insurance company what payment options they offer. To size up the bill, see how much a funeral costs. For the basics of the coverage itself, read What Is Final Expense Insurance?

How long does it take to get life insurance money after a death?

It depends on your state and the policy. Two state examples:

• Texas: TDI says, “Companies must pay the death benefit within two months after getting proof of death and verifying your beneficiary.” For an individual life policy, TDI says the company must also pay interest on the death benefit “from the time it got proof of death to the time it agreed to pay the death benefit.”
• Washington: The OIC says, “To ensure prompt settlements, the insurer must pay you no less than 8% interest starting from the date of death,” and “An additional 3% is payable on claims it doesn’t settle within 90 days of when you provided proof of death.”

If you live elsewhere, ask your state insurance department what deadlines and interest rules apply.

What is the contestable period?

TDI says, “Life insurance policies have a two-year contestable period.” If the insured dies within that period, “the company may review the information you gave on your insurance application,” and “If the company learns you gave wrong information or didn’t disclose something, it can deny payment.” TDI adds, “Companies might take longer to pay the death benefit if you die during the policy’s contestable period.”

Washington’s OIC says that if a claim is filed in the first two years, “the insurance company will conduct an investigation,” and if the policyholder left out important facts, “the company will likely deny the claim, regardless of the policyholder’s intent.” TDI says that if a company denies payment, “it must return the premiums to your beneficiary.” TDI also notes that a policy “will have a new contestable period if it lapses and you later reinstate it.”

The OIC also says a policy can include exclusions, such as suicide within two years of the issue date (except group life). “Read your policy carefully.”

What if a claim is delayed or denied?

1. Ask the company for the reason in writing and what else it needs from you.
2. Check your dates. Was the death within two years of the policy start or a reinstatement? That can affect timing.
3. Contact your state insurance department. The NAIC says to “Contact the department of insurance in your jurisdiction if you have questions about life insurance.”
4. File a complaint if needed. Washington’s OIC says, “You have the right to file a complaint against an insurer or agent,” and “We’ll send your complaint to the insurer or agent and ask for a response.”

Some state contacts:

• Texas: TDI Consumer Help Line, 800-252-3439
• Washington: OIC Consumer Advocacy, 800-562-6900
• California: The California Department of Insurance offers electronic complaint forms and a printable “Non-Health (i.e. Auto, Home, Life)” form, and says paper forms “may delay the process.” Its line for insurance questions is 1-800-927-4357.

How can I make it easier for my own family?

The NAIC suggests you “Place a current copy of the policy with your will or other estate paperwork.” Tell your beneficiaries the insurer’s name, the policy number and where the policy is kept. If you’re helping a parent set up coverage, see funeral insurance for parents.

The bottom line

To file a life insurance or final expense claim, find the policy (or use the NAIC’s free locator), contact the insurer or agent, and send the claim form with a copy of the death certificate. In Texas, companies must pay within two months after proof of death and verifying the beneficiary, and deaths during the two-year contestable period can be reviewed. If something goes wrong, you can contact your state insurance department.

If you’re thinking about final expense coverage for yourself, a licensed agent can go over options with you, with no obligation. Here’s how calling RestAssured works.

RestAssured is not an insurance company or an insurance agency; we connect callers with independently licensed insurance agents.

Frequently asked questions

How do I file a life insurance claim after a death?

Washington’s Office of the Insurance Commissioner says a beneficiary should contact the policyholder’s insurer or agent and notify them of the death, then submit a claim form with a copy of the death certificate. If there’s more than one beneficiary, each person needs to complete a claim form.

How do I find out if someone had life insurance?

Look through the person’s financial records and old mail for payments to or statements from an insurer, as Washington’s regulator suggests. You can also use the NAIC’s free Life Insurance Policy Locator; if a policy is found and you are the beneficiary, the company will contact you directly.

How long does it take to get life insurance money after death?

In Texas, companies must pay the death benefit within two months after getting proof of death and verifying the beneficiary, and payment can take longer if the death happened during the two-year contestable period. Rules differ by state, so ask the insurance company or your state insurance department what applies.

What happens to life insurance if there is no beneficiary?

The Texas Department of Insurance says that if no beneficiary is named, or the beneficiary is dead, the company will pay the death benefit to the estate. Texas adds that heirs might have to pay taxes on money they get from the estate.

Can a life insurance claim be denied?

Yes. Washington’s regulator says a claim filed in the first two years of a policy is investigated and will likely be denied if the policyholder left important facts off the application, and a policy can have exclusions such as suicide within two years. If you think a claim was handled wrongly, you can file a complaint with your state insurance department.

Sources

• Washington Office of the Insurance Commissioner: Filing a life insurance claim
• Washington Office of the Insurance Commissioner: How to find an old life insurance policy
• Texas Department of Insurance: Life insurance guide
• NAIC: Learn How to Use the NAIC Life Insurance Policy Locator
• NAIC: What to Know About Life Insurance Beneficiaries
• Washington Office of the Insurance Commissioner: Funeral insurance
• Washington Office of the Insurance Commissioner: Complaints
• Alaska Division of Insurance: Burial Insurance
• California Department of Insurance: File a Complaint

This article is for general education. Policy features, prices and eligibility vary by insurance company and state; your agent will explain the specific terms of any policy before you apply.