How to Claim a Life Insurance Policy

How to Claim a Life Insurance Policy

Article by Denise

When you purchase a life insurance policy, you need to be sure that the company has a good track record for timely disbursements of payoffs. Companies with a high life insurance rating generally perform well. Most insurance companies try to make the process of claiming your insurance policy as easy as possible and are able to make payoffs within 7 to 60 days from the date of claim. But in order to initiate the process, the beneficiary needs to take certain steps. You will need to inform your insurance agent or broker about the decease of the policyholder. Your broker will act as the middleman between you and your life insurance company. He or she can help you fill out all claim documents and guide you in the process of filing for a claim. If you do not have an agent, you can directly call the insurance company and ask how you can proceed with filing a claim. If there is more than one beneficiary on a insurance policy, each beneficiary must fill out forms and send it to the insurance company.You will need to decide how you want your payment to be made. You have the following options:

You can receive a lump sum. This gives you the advantage of using the death benefits for immediate needs, such as funeral expenses, and gives you the flexibility of how you would like to invest the rest of the money.You can ask the life insurance company to hold the proceeds for a