Collecting on a life insurance policy Author:    Posted under: Life InsuranceLife Insurance questions answered

If you own a life insurance and you discover that you have terminal illness and suddenly dies, your insurance provider must be informed of the death, so that your family/beneficiary receives the claim. It’s better to tell your family, close relative or your best friend that you have a life insurance, its coverage and claims, so they can call your insurance company when that inevitably comes.

If you are the beneficiary of a life insurance policy, collecting on the insured can be a difficult job. Since you’re still in awe losing your loved one and might be in the grieving period, but you have to face and discuss the claim with the insurance provider it’s not a comfortable situation. To help speed up the process, make sure that you have as much information on your loved one available to give to the agent and make it go smoother for everyone involved.

When the deceased was not able to tell that his/her is insured, and don’t have any idea what to do then here are ways that help you receive the pay-out. If you don’t know any insurance professional, or do not know who the deceased’s agent was, you can deal with the insurance company directly. Know the procedure to be followed by calling or writing the nearest office. They might ask you to provide authorized copies of the death certificate from the funeral head, a copy to be submitted in every life insurance policy claim. If it asked, send the death certificate together with the claim form and either the policy itself.

You ought to receive a settlement in somewhat short time, once the claim is submitted. The insurance company will manage the decision as instructed. You may be given a lump sum or instalments, according to your option or the policy owner’s past choice, or you may be able to leave the pay-out on deposit. The money will grow interest till it is withdrawn.

What about when the beneficiary finds out that the insurance was rejected by the insure provider. First, one has got to follow a set of processes, then secure the death certificate of the insured as early as possible and give it to the company. Call up your insurance agent and ask assistance to get all essential documents filled truthfully. The agent could act as an mediator between the claimant and the company. If you don’t have an agent, get in touch with the insurance company directly. Send a certified copy of the death certificate to your insured. When done, the settlement is issued right away. After the claim is submitted the claim are distributed accordingly, Lump Sum, specific income provision, life income option and the interest income option. The company handles the proceeds and pays you interest on them. The death benefit stays intact.


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