Improper processing of a life insurance claim will affect the amount of time that it takes for you or your family to receive the funds that you’re entitled to. This can cause a bad situation as you may not be able to pay for a proper funeral or burial without this money. If you understand the process then you may not only be able to secure the money faster but you may be able to negotiate various arrangements for the payment of the money if you need to.
Someone should contact the life insurance company as soon as they’ve found out that the person has passed away. While they may be grieving it’s important to get the process started so that the funds aren’t delayed and the funeral can be paid for. It’s often best to contact an agent within 24 hours after the person has passed away. If you are unsure if the deceased had a life insurance policy then you will need to either ask other family members, the person in charge of the affairs or you may have to resort to calling local life insurance companies.
Once the agent’s been notified of the death they will have paperwork that has to be filled out before they can release the funds. The beneficiary can but doesn’t have to fill out the paperwork. However the beneficiary will need to go to the life insurance company to not only validate the claim but to be able to receive any initial funds that are released.
Next you will need to locate and collect the certificate of death. In most cases you can get the death certificate right from the coroner’s office. You may be able to get it from the funeral director if the body has already been sent to the funeral home. After you’ve got the paper you will need to make copies of it. Most insurance companies will take a copy of the certificate of death as proof. You should note that you don’t want to accidentally send out the original copy.
You will then want to ask the life insurance company how the payment is going to be made. Each policy is different. Some policies will have a lump sum payment while others will be set up to distribute the money in payments. While this may be more convenient for the company it may hurt your ability to pay for the funeral. Most funerals are held within a week of the person’s passing. If the insurance company has not given the money from the plan before then you should get in contact with them and find out the status of the account.
Graham McKenzie is the syndication coordinator a leading South African Insurance information portal, which amongst others specialises in Short Term Insurance.
categories: Insurance,Finance,Money,Personal Finance,Car Insurance,Life Insurance,Household Insurance
