Filing a life insurance claim can feel overwhelming, especially during an already difficult time. Understanding how the life insurance claims process works — what steps to take, what documents are needed, and how long it may take — can help make the experience clearer and less stressful.
Who Can File a Life Insurance Claim?
In most cases, the beneficiary named on the life insurance policy is the person who files the claim. Beneficiaries are chosen by the policyholder and can include one or more individuals, a trust, or an organization. If there are multiple beneficiaries, each may need to file a claim separately for their portion of the benefit.
It’s important to note that the executor of an estate does not automatically have the right to file a life insurance claim unless the estate itself is named as the beneficiary. Understanding who can file a life insurance claim helps ensure the process moves smoothly and avoids delays during an already difficult time.
How the Life Insurance Claim Process Works
Filing a life insurance claim is usually straightforward, but knowing the steps ahead of time can help reduce stress and avoid delays. Below is a clear overview of how the life insurance claim process typically works.
1. Obtain certified copies of the death certificate
You’ll usually need at least one certified copy, which can be requested from the funeral home or local vital records office.
3. Complete the claim form
The beneficiary fills out a claim form with basic information about the policyholder and the beneficiary.
5. Claim review and payout
Once the insurer reviews and approves the claim, the death benefit is paid according to the selected payout option.
2. Contact the insurance company or agent
Notify the insurer or the agent who helped set up the policy. They can provide claim forms and explain next steps.
4. Submit required documentation
This typically includes the claim form, death certificate, and identification. Additional documents may be requested in some cases.
Understanding how to file a life insurance claim step by step can help ensure the process moves as smoothly and quickly as possible during a difficult time.
What Documents Are Required to File a Life Insurance Claim?
To process a life insurance claim, insurers require a few standard documents to verify the claim and issue payment. Having these materials ready can help prevent delays and make the claims process smoother.
Typically required documents include:
-
Certified copy of the death certificate, usually obtained through the funeral home or local records office
-
Policy number, if available (this helps speed up processing, but it’s not always required)
-
Completed claim form, provided by the insurance company
-
Identification for the beneficiary filing the claim
-
Additional documents, if requested, depending on the policy or circumstances of the claim
Providing complete and accurate documentation upfront can help ensure the life insurance claim is reviewed and paid as efficiently as possible.
Protect Against the Unexpected
How Long Do Life Insurance Claims Take?
In many cases, a life insurance claim is processed and paid within 1 to 3 weeks after all required documents are submitted. Simple claims — where paperwork is complete and there are no complications — may be approved even faster. Understanding how long a life insurance claim takes can help set realistic expectations during an already difficult time.
However, some claims may take longer depending on the circumstances. Delays can occur if additional documentation is needed, if information is missing, or if the policy is within the contestability period (typically the first two years), when insurers may review the application more closely. While most valid claims are paid, knowing why delays happen can help reduce uncertainty and frustration.
How Are Life Insurance Benefits Paid?
Once a life insurance claim is approved, beneficiaries typically have several payout options to choose from. The right option depends on personal preferences, financial needs, and how the policy was structured.
Common life insurance payout options include:
- Lump sum payment (the most common option), where the full death benefit is paid at once
- Interest-bearing accounts, where the benefit remains with the insurer and earns interest while funds are accessed as needed
- Installment payments, which distribute the benefit over time in regular payments
- Multiple beneficiary payments, where the death benefit is divided according to the percentages specified in the policy
Understanding how life insurance benefits are paid helps beneficiaries choose the option that best supports their financial situation and long-term needs.
Tips to Make the Life Insurance Claims Process Easier
Taking a few proactive steps now can make a meaningful difference for your loved ones later. When policy information is organized and expectations are clear, the life insurance claims process is often much smoother during an already emotional time.
Helpful steps include:
-
Keep policy information accessible, such as policy numbers, insurer contact details, and beneficiary information
-
Review beneficiaries regularly to ensure they reflect current wishes and life changes
-
Inform trusted family members or executors about the existence of your policy and where documents are stored
-
Work with a reputable insurer or licensed advisor who can assist beneficiaries if questions arise
These simple actions can help reduce confusion, prevent delays, and ensure your life insurance benefit is paid as smoothly as possible. If you’d like help reviewing your policy or making sure everything is set up correctly, you can get a quote online or call us at (800) 442-9899 to speak with a licensed advisor.
How Life Insurance Claims Work: FAQs
What is a life insurance claim?
A life insurance claim is a request made by the beneficiary to receive the policy’s death benefit after the insured person passes away. Once approved, the insurer pays the benefit according to the policy terms.
Who can file a life insurance claim?
Only the named beneficiary or beneficiaries listed on the policy can file a claim. If no beneficiary is listed, the benefit is typically paid to the insured’s estate.
How do I file a life insurance claim?
The general steps are:
-
Notify the insurance company of the death
-
Complete a claim form
-
Submit a certified death certificate
-
Provide any additional requested documentation
Claims can usually be submitted online, by mail, or through an agent.
How long does a life insurance claim take to pay out?
Most life insurance claims are paid within 7–30 days after the insurer receives all required documents. Delays may occur if additional review is needed.
Is the life insurance payout taxable?
In most cases, life insurance death benefits are income-tax-free for beneficiaries. However, interest earned on delayed payouts may be taxable, and estate taxes may apply in certain situations.
What documents are required to file a claim?
Typically required documents include:
-
Completed claim form
-
Certified copy of the death certificate
-
Policy number (if available)
-
Proof of identity for beneficiaries
Some situations may require additional paperwork.
What is the contestability period?
The contestability period is usually the first two years of a policy. During this time, insurers may review the application for misrepresentation. After this period, claims are rarely contested unless fraud is proven.
Can a life insurance claim be denied?
Yes, but denials are uncommon. Common reasons include:
-
Policy lapse due to nonpayment
-
Material misrepresentation on the application
-
Death during the suicide exclusion period
-
Excluded causes of death
Most valid claims are paid without issue.
What happens if the policy lapsed before death?
If the policy fully lapsed and was not reinstated, the insurer typically will not pay the death benefit. This is why maintaining premium payments is critical.
How are multiple beneficiaries paid?
If there are multiple beneficiaries, the payout is divided according to the percentage allocations listed on the policy. If no percentages are specified, benefits are usually split evenly.
Can beneficiaries choose how the payout is received?
Yes. Payout options may include:
-
Lump-sum payment
-
Installments over time
-
Interest-bearing account
Options vary by insurer and policy.
What if the beneficiary cannot be located?
If a beneficiary cannot be found, the insurer may hold the funds or transfer them to the state under unclaimed property laws. Keeping beneficiary information updated helps avoid delays.
What happens if there is no beneficiary listed?
If no beneficiary is named, the death benefit typically becomes part of the insured’s estate, which may require probate and cause delays and potential taxes.
Can an agent help with the life insurance claim process?
Yes. An agent can:
-
Help file the claim correctly
-
Communicate with the insurer
-
Prevent paperwork errors
-
Speed up processing
-
Support beneficiaries during a difficult time
Many families find agent assistance invaluable.
What should beneficiaries do immediately after a death?
Key steps include:
-
Obtain certified copies of the death certificate
-
Locate life insurance policies
-
Contact the insurance company or agent
-
Avoid rushing financial decisions
Proper guidance helps ensure a smooth and timely claim.
