They CAN take a long time. The good ones build their reputation on settling claims as quickly as possible. Most won't start a claim until they have recieved a certified death certificate and claim form. The majority will pay within 30-days of receiving that.
There are some that make a sport out of dragging on the claims process. The longest I've personally seen was 8-months and about 6 of those 8-months was because they hadn't had time to look at it yet. It was inexcusable.
The very best will pay the claim within 24-hours of death with no death certificate needed. The claims process doesn't get any better than that.
If the death occurs with in the first 2-years it will be contestable and that will slow down the process. But it should still be within 2months.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Usually the duration allowed for a company to pay a claim is set by each state's office of the insurance commissioner or a similar named branch of government. An insurance company must have an established process they go through for claims payment. They cannot make it up as they go. When the person handling the claim for the insured submits the necessary requirements, payment should be forthcoming. The claim check will also contain interest earned on the death benefit from the date the death occurred to the date the check was issued.
If ever in a situation where you feel an insurance carrier is purposely slowing down a claim, contact your state department of insurance and file a complaint. This will greatly improve the speed of a carrier most of the time.
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There are some that make a sport out of dragging on the claims process. The longest I've personally seen was 8-months and about 6 of those 8-months was because they hadn't had time to look at it yet. It was inexcusable.
The very best will pay the claim within 24-hours of death with no death certificate needed. The claims process doesn't get any better than that.
If the death occurs with in the first 2-years it will be contestable and that will slow down the process. But it should still be within 2months.
If ever in a situation where you feel an insurance carrier is purposely slowing down a claim, contact your state department of insurance and file a complaint. This will greatly improve the speed of a carrier most of the time.