How to Claim Life Insurance

To file a life insurance claim, call the insurance company's claims department and request a claim form. When you call, say: "I need to file a death claim on policy number [number]. The policyholder [name] passed away on [date]." They will mail or email you a claims packet. Complete the form, attach a certified death certificate (not a photocopy), and return it. Most claims are processed within 30 to 60 days, and proceeds are paid tax-free to the named beneficiary.

Do not limit your search to policies you already know about. Check the deceased's employer — many employers provide group life insurance equal to one to two times the annual salary at no cost to the employee, and many employees never tell their families about this benefit. Check credit card statements for monthly premiums to unknown insurance companies. Look for mortgage life insurance or credit life insurance that may pay off loans. Some fraternal organizations, unions, and professional associations include life insurance as a membership benefit. If you suspect a policy exists but cannot find it, the National Association of Insurance Commissioners (NAIC) offers a free Life Insurance Policy Locator service at eapps.naic.org/life-policy-locator.

When you receive the payout, you will typically be offered a choice: a lump sum or an annuity (structured payments over time). Consider your financial situation carefully before choosing. A lump sum gives you immediate access to the full amount but requires discipline to manage. An annuity provides steady income but may earn a lower return than investing the lump sum yourself. If the payout is large (over $100,000), consult a fee-only financial advisor before making this decision. Do not feel pressured by the insurance company to choose immediately — you can take time to decide.