You’re acting on behalf of a deceased family member, and you discover that they had the foresight to take out a life insurance policy. The payout will certainly be invaluable to its beneficiaries, particularly if they are the deceased’s bereaved family members. But you don’t know how to make a claim on life insurance.

Help is at hand. In this article, we’ll look at how to claim life insurance after a death. UK insurance companies operate in similar ways when it comes to the claims process, so no matter which company you’re dealing with, this information should apply.

Steps to Claim Life Insurance After Someone Dies

Your first step is to identify the life insurance provider. If you were able to find a policy document among the deceased’s papers, you’ll have this information along with their policy number. If you aren’t sure whether the deceased had life insurance, try looking through bank statements and contact the insurance companies that deduct premiums from their account. An accountant, if the deceased made use of one, should know about any life insurance they arranged for.

If you can’t find a policy document but can identify an insurance provider, get help from them. If you found a policy document, you can make the process easier by supplying the policy number. However, you’ll also need a death certificate stating the cause of death, and you will be asked to identify yourself and your relationship to the person who passed away.

Once you have contacted the insurers, they’ll guide you through the completion of an on or offline claim form and keep you informed as to progress.

How to Claim Life Insurance When Someone Dies: Who Can Lodge a Claim

Anyone can notify an insurance company of the death of an insured person to get the claims process started, so it doesn’t matter if you’re not a beneficiary. You can act on their behalf. As you’d expect, you won’t necessarily be entitled to any payout just because you initiated the process.

The people to whom death benefits are paid will depend on who has been named as the deceased person’s beneficiary or beneficiaries. If you aren’t sure who the beneficiaries are, simply ask the insurance company.

If the named beneficiaries have passed away, the death benefit will be paid into the estate of the deceased to be distributed according to his or her will.  If there’s no will, the law provides for the distribution of the assets in the estate to the deceased’s closest family members.

How to Make a Life Insurance Claim Through an Employer

Some companies offer life insurance as an employee benefit to workers who die while they are still in service to the company. To claim, simply notify the employer of the person’s death. They will have an “expression of wish” form which stipulates the beneficiaries’ names. You will need this to claim from the life insurance provider the employer selected.

How Long do I Have to Make a Life Insurance Claim?

As soon as you have a death certificate and know which insurer to contact, you can make an insurance claim. It’s normal for families who have lost a significant contributor to their household’s expenses to need extra funds, so claims are often made very soon after the death.

However, if the beneficiaries need some time to process their loss, there’s no need to hurry.  Insurance claims can be delayed for months, or even years, after the death of the insured person. The beneficiaries will usually not experience any difficulty with the insurance payout provided the insurance was up-to-date and active at the time of death.

If you’ve been worried about how long you have to claim life insurance after a death, the simple answer is that there is no set time limit.

How Quickly Will Life Insurance Payouts be Received?

Life insurance payouts are usually processed quite quickly. Rarely, it may take as long as two months to receive payment of the death benefit. On average, it takes about a month, and sometimes, it can take as little as two weeks.  

The payment is usually made directly to the beneficiary’s bank account unless the deceased has made other arrangements. For example, some people stipulate that life insurance payouts go to a trust which is administered by trustees in accordance with the deceased’s “letter of wishes.”

Why Might a Life Insurance Claim Be Rejected?


Incomplete health information when the person applied

When a person applies for life insurance, they must provide information regarding their health to the insurer. This information determines what their premiums should be and is the first building block of any agreement between the insured and his or her insurance company. If the insurer finds that the person failed to be completely honest about their health before the policy came into effect, the company will reject a claim against the insurance policy.

Exclusions

Most life insurance policies stipulate that they will not pay death benefits if the person who was insured dies as a result of participating in certain dangerous activities. These activities are listed in the policy document and they may be work or leisure-related. Suicide or death from self-inflicted injuries could also result in the rejection of death benefit claims.

Policy no longer valid at the time of death

Finally, if a person has failed to pay their premiums and allowed the policy to lapse, has cancelled the policy, or if the policy expired before the date of death, the claim will be rejected.

Are You Considering Life Insurance for Yourself but Fear Rejection?

Since you’re going through the process of working out how to make a life insurance claim, you might be thinking of getting life insurance of your own. You’d like to leave your nearest and dearest with a little extra financial aid yourself.

But having read about the dreaded health questionnaire you’ll have to fill in, you might be worried that a medical condition like Type 2 diabetes could make it hard for you to get reasonably-priced insurance or any insurance at all. The truth is that you’re perfectly right.

You could go through all the rigmarole and long waits while you wait to hear whether you qualify for life insurance, or you can skip to Blueberry Life instead.

At Blueberry Life, we keep things simple for people living with chronic conditions. You can get insurance coverage quickly - even on the same day you apply. Best of all, your cover is based on you and how well you’re managing your condition, so you won’t pay more than you really should. Visit our website to find out more about life insurance for chronic conditions or complete our simple online application form.

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This is a blog and should not be taken as financial advice.