When the Time Comes

Filing a life insurance claim is something most people hope never to think about, but when the time comes, knowing the process can relieve an enormous amount of stress during an already difficult period. The good news: claiming a life insurance death benefit is generally a straightforward process, and insurers are legally required to process claims in a timely manner.

Who Can File a Claim?

Only a named beneficiary on the policy can file a claim. This is why keeping your beneficiary designations up to date is so important. If the policyholder named their spouse as beneficiary but later divorced and never updated the policy, complications can arise. Always review your designations after major life events.

Step-by-Step: How to File a Life Insurance Claim

Step 1: Locate the Policy

Find the original policy documents. These may be in physical form at home, stored digitally, or held by an attorney. Key details you'll need:

  • Policy number
  • Name of the insurance company
  • Contact information for the insurer

If you can't find the policy, check the deceased's bank statements for premium payments, which will identify the insurer. You can also search the National Association of Insurance Commissioners (NAIC) life insurance policy locator tool.

Step 2: Obtain Death Certificates

You will need certified copies of the death certificate — typically one per insurance company. Certified copies are obtained through the funeral home or your local vital records office. Order more than you think you'll need, as they're used by multiple institutions (banks, Social Security, etc.).

Step 3: Contact the Insurance Company

Call the insurer's claims department directly. Most companies have a dedicated claims hotline. A claims representative will guide you through their specific process and send you the required claim forms.

Step 4: Complete the Claim Form

Fill out the insurer's claimant's statement (also called a proof-of-death form). You'll provide:

  • Your relationship to the deceased
  • Your contact and banking details (for payment)
  • Cause and date of death (as on the death certificate)

Step 5: Submit All Documentation

Send the completed claim form and certified death certificate to the insurer. Some companies accept digital submissions; others require originals by mail. Keep copies of everything you submit.

Step 6: Choose Your Payout Option

Most beneficiaries can choose how they receive the death benefit:

  • Lump sum: The full amount paid at once — the most common choice
  • Installments: Paid out over a set period
  • Retained asset account: Held in an interest-bearing account managed by the insurer

For most people, a lump sum provides the most flexibility and immediate access to funds.

How Long Does It Take?

Most life insurance claims are paid within 30–60 days of submitting complete documentation. Many straightforward claims are resolved much faster — sometimes within a week or two. Delays can occur if:

  • The death occurred during the policy's contestability period (usually the first two years)
  • There are questions about the cause of death
  • Documentation is incomplete or inconsistent

Are Death Benefits Taxable?

In most cases, life insurance death benefits are not subject to federal income tax. However, if the death benefit earns interest before being paid out, that interest portion may be taxable. Large estates may also face estate tax considerations. Consult a tax professional if you're unsure.

What If a Claim Is Denied?

If your claim is denied, you have the right to appeal. Common reasons for denial include misrepresentation on the original application, policy lapse due to unpaid premiums, or the cause of death being excluded (e.g., some policies exclude suicide in the first two years). Request a written explanation and consult with an insurance attorney if needed.