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Filing a Life Insurance Claim

 

Most people don’t want to even think about a spouse or close family member dying, so naturally they won’t spend much thought in planning how to file a claim when someone dies. But the whole point of life insurance is to help families be prepared in case the worst does occur, so it’s better to know what procedures to follow now so you won’t have be figuring it out while you’re grieving. Many widows, widowers or other beneficiaries may feel guilty talking about money in light of the death of a family member, but the point of life insurance isn’t to get rich but to protect yourself and your family. Here are a few steps to take in order to be ready should the worst happen.

 

Research Thoroughly Before Buying

There’s almost always a bad apple in any group, and life insurance companies are no different. Don’t just buy from a friend of a friend -- find out about the company’s history, its credit rating and its reputability.  Most companies are legitimate, but you don’t want to risk the danger of discovering you’ve been scammed right when your family member dies.

 

Make sure the agent is licensed in the state in which he or she practices, find out whether the agent works full-time with a reputable company, and find out about their credit rating from Standard & Poor’s and Moody’s.

 

How do you find out these things? First of all, don’t worry about playing detective, but start by asking the agent directly. Honest agents that sell for good companies should be excited to tell you about their business and why it’s the best. If they start to be evasive, then you can always go to another company and another agent -- after all, there’s no shortage of insurance agents.

 

If the agent is thorough, polite and understands your needs, chances are that he or she will also be understanding and cooperative should you ever have to file a claim.

Once you find out you have a policy with a reputable company, then you shouldn’t have to even think about it unless you file a claim.

 

Pick up the Phone

Make sure you have your agent’s business card, and should he or she ever resign, find out who’s going to be representing you. Keep all of the paperwork you receive in a file cabinet or other secure place. You don’t want to have to call a 1-800 number or be put on hold -- you want to speak with someone immediately.

 

Your agent should be able to help you fill out the paperwork. When you’re done filling out forms, send it in as soon as possible. If you have any questions along the way, your sales agent should be able to help you with anything. This is the time when you’ll be glad you did your homework and chose a good agent.

 

What if You’ve Lost Your Paperwork?

But if you’ve lost your paperwork and can’t remember the company’s name, you don’t need to despair. According to QuickQuote, you can write the Missing Policy Service at :American Council of Life Insurance, 1001 Pennsylvania Avenue, NW, Washington, DC, 20004-2599.  According to a QuickQuote article, your policy will be sent to many of the largest insurance companies. You will have to pay at least a small fee to cover the costs of doing the legwork, but it should be worthwhile if your policy’s company is located.

Hold on to the death certificate, which you will probably have to submit with the claim.

Most articles about filing life insurance claims state that insurance companies are typically prompt and efficient about issuing you the money after you’ve filed a claim.

 

Conclusion

Be prepared. Research the life insurance company you want to do business with, find a good, personable agent, and keep your policy and paperwork in a secure place. Although you can receive help if you lose the paperwork, there’s no guarantee or substitute for solid preparation.  If you follow these steps carefully, the insurance company will be sending you the death benefit very quickly.

 

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