Claiming a Death Benefit Author:    Posted under: Life InsuranceLife Insurance questions answeredLife Insurance Types


Death Benefit, also known as Proceeds is the amount that is payable to his or her beneficiary by the life insurance company upon the insured’s death.

A person who purchases a life insurance policy is called a policyholder or insured. He or She will then be insured against death. Upon the death of the insured, the life insurance company will then compensate the beneficiary, which is the person who will receive the compensation upon the death of the insured, a lump sum of money which is called death benefit. Although, if the person purchases or buys a disability insurance, then there will be no death benefit should he die of old age or illness. This is because disability policy only provides coverage for the insured’s death or His of Her disability caused by accident only.

Splitting the death benefit to two or more persons is also possible. The policy will then include their names and then there also will be a few beneficiaries endorsed in the policy. It is the beneficiary or beneficiaries who will be the ones legally and eligibly able to receive the death benefit from the life insurance company in the time of the insured’s death.

Minimum requirement and proof

In the case of the death of the insured, the beneficiary will then need to make a report to the police and acquire a death certificate, which is the legal proof that one has to show to the insurance company that the insured person has passed away. It is also possible to ask the doctor or any authorized personnel to issue documents in order to obtain a death certificate, if the person died in a hospital. Usually processing this will take a week. This is the mandatory way to claim the life insurance death benefit or proceeds, properties or asset of the insured that has passed and a way to proof that he or she has already died.

A beneficiary claim form will be given by the insurance company to the beneficiary to fill and then processing it will take a few weeks depending on the evidence provided and the efficiency of the proof by the petitioner. Once the confirmation is cleared and done with, the proceeds can be collected by the beneficiary, usually in one lump sum or annuity but on most cases a payment of full amount, depending on what type of policy the policyholder bought.

Disability insurance

In cases where the insured survives an accident while owning a personal accident insurance or a disability insurance, he or she can claim total disabled compensation. Although if the policyholder dies, the accidental death benefit from the insurance company can be claimed by the beneficiaries.

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