Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
When an insured dies, the beneficiary making the claim on the policy will need to send in a completed claim form and a copy of the death certificate (some carriers may have an additional form - varies by carrier). Once these items are received by the carrier, they will pay out the claim to the beneficiary.
This is a great question. If it is an expected death, ie. old age, a natural death, after the claim forms along with the death certificate you can expect the benefit to mailed out within 2-4 weeks. If the death was due to other circumstances such as a suicide, the process to get the death certificate becomes more complicated, up to 14 weeks then at which time you can submit the claim forms with the certificate to get the benefit.
Chief Encouragement Officer, Larsen Insurance Agency, Buffalo, NY
It shouldn't be more than 7 days from the time you submit the paperwork and the death certificate. Sometimes getting the death certificate can be the longest wait time and not the insurance paperwork. If there is any suspicion of suicide (I hope not) then it could take much longer (every life insurance policy has a suicide clause, but usually with a time limit.
Most claims are paid out within 2 weeks of the date the death certificate is ready. I would expect that to be the case nearly any time unless there are complications with beneficiary (a named beneficiary is deceased - or unclear) or if someone challenges the wishes of the insured (which doesn't happen very often).
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
A death certificate is a document that meets state requirements. The state regulates who can sign a death certificate. The death certificate establishes the identity of the victim and the cause of death. In many states the death of someone under 18 must follow different procedures. This process can be quick, for example, extreme old age, or very long, mysterious disappearance.
The death certificate and the claim form are filed with the insurance company. The claims department reviews the claim to make sure that paying the claim is appropriate. Most companies consider a death claim in the first two years of a policy to be unusual and of concern. Some death claims involve fraud so the company might look for that. The company is paying interest on the death claim so they will move as quickly as possible. Sometimes that can be frustratingly slow but usually it is quite quick.
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I am speaking for experience personally.
The death certificate and the claim form are filed with the insurance company. The claims department reviews the claim to make sure that paying the claim is appropriate. Most companies consider a death claim in the first two years of a policy to be unusual and of concern. Some death claims involve fraud so the company might look for that. The company is paying interest on the death claim so they will move as quickly as possible. Sometimes that can be frustratingly slow but usually it is quite quick.