Life insurance is one conversation that many people do not like to have. However with the high cost of funerals and the abundance of expenses left over after leaving Earth, the minimal amount paid for life insurance premiums is a solid investment to make. After going threw all of the efforts to protect loved ones from the high cost associated passing on, remaining family members may be at a loss on how to file a life insurance claim. Following are six steps that will help remaining loved ones to easily process an life insurance claim so that no more stress is added to the already stressful situation of loosing a loved one.
• Locate the insurance policy: Even with talking about death being somewhat taboo, there still needs to be communication between the policy holder and the beneficiary. The Beneficiary needs to know not only that the policy exists but where to locate it as well. A safe deposit box would be the safest place for any important information like insurance policies.
• Contact the insurance provider: On the policy there should be a number to call in order to place a claim. After contacting the insurance company they will provide you with a list of all the information they will need, and give you directions on what to do with the information.
• Complete all forms and documents from the insurance company: Usually the insurance company will mail you the form that you need to fill out. To expedite the claim you may be able to down load the forms needed to file the claim online. With the documents the insurance provider will request at minimum a
certified copy of the death certificate stating the cause of death of the decedent.
• Decide the best way to receive the proceeds: As the beneficiary you are able to decide how you want to receive the proceeds from the insurance policy. Some options may be a large lump sum, installments, or even leaving the proceeds up as an investment and collect interest and dividends.
• Wait: This step maybe simply stated but there will be a wait for the claim to be processed. This time could be days, weeks, or months depending on the insurance provider. During this time the insurance company will verify the documents submitted by the beneficiary, and move money into position so that they will be able to release the proceeds once everything else checks out concerning the policy.
• The last step is if you believe that there is an existing insurance policy and you cannot locate it. Contact the American Council of Life Insurance also known as the (ACLI). There is a small fee associated with their services but for that fee they will conduct a search to see if there is an existing policy. The address for the ACLI is 1001 Pennsylvania Avenue, NW Washington DC 20004-2599. They will require a self-addressed business-sized envelope.
In the end some may feel greedy filing an insurance claim. However the truth is that the policyholder paid for that claim and wanted them to have the proceeds. Even though no amount of money will bring back a loved one, the fact still remains that the deceased loved one thought to provide for remaining loved ones even beyond their time on this Earth.