Need to file a term life insurance claim? Here's how...

Losing your loved one can be emotionally and, many times, financially crippling. In those circumstances, filing any sort of insurance claim can sound cruel and calculative.  However, in hard times such as these, any financial support is useful.  Therefore, being a beneficiary of the policy, you must file all the necessary paperwork in order to receive the settlement money.  Term life insurance is a less expensive policy that compensates the beneficiaries in the event of the insured’s death during the specified term.  It is a pure death benefit insurance type that is generally used to cover financial liabilities such as funeral costs, mortgage debt, and college education for kids. Here are some things that you need to know when filing for a claim form for a term life insurance policy:

Usually, the important documents such as the life insurance policy, mortgage documents, etc. are kept in a safe location. Make sure you find them and review the policy documents to understand the policy wordings.

The documents needed generally include the birth certificate of the insured, residence information, policy numbers and the death certificate showing the date and cause of death of the insured.

Sometimes, life insurance companies send insurance adjusters to investigate the circumstances under which the insured died or if they need more information about the insured’s death to process the claim.

Following the submission of the relevant paperwork, the insurance company must assess your claim, verify that the policy is valid and check that all the conditions have been met. However, if the death certificate is missing, the claim process will be delayed consequently.

The claim approval process, in most cases, takes a short period of time. It can anywhere from several days to a couple of weeks for your settlement to be handed out. Once the claim is accepted, you should receive a settlement as instructed in the policy. You may receive a lump sum or installments over a period of time, as per your preference or the insured's decision.   

Filing a term life insurance claim following the death of your family member can sound very illogical. Luckily, the life insurance claim process is not as difficult as it sounds. Of course, the settlement can never replace your loved one but it can provide you with a financial solution for the time being.

When filing a term life insurance claim, contact your agent or broker to learn in detail about what documents are needed for the claim.  However, in case you do not know the agent that the insured dealt with before, you can call the nearest office of the company or even go on the company’s website and ask about the claiming process.  They will provide you help with the procedure of a life insurance policy claim and request that you arrange the essential paperwork.

Affordable Life Insurance Rates
Are Waiting For You!
Choose Your State

Related Information

Everything You Need to Know About Life Insurance Payouts

If you have a life insurance policy, a payout of the death benefit is preceded by a claim providing a death certificate.

Read More

How Life Insurance Payouts Work

Generally, there are 3 main steps beneficiaries must take to receive a life insurance payout: file a death claim, provide proof of death and wait for approval.

Read More

How Do Life Insurance Payouts Work?

In the event of the insured's death, a life insurance death benefit will be paid to the named beneficiary on the policy - provided a claim is filed.

Read More

Is Life Insurance Taxable?

In general, the money received from a life insurance payout — called a death benefit — is not considered taxable income.

Read More

Who Should Buy Term Life Insurance Policies?

Life insurance pays money to beneficiaries after the death of a policy holder. Who should buy life insurance and how can the benefits be used?

Read More

What are the Benefits of Term Life Insurance?

With a term life insurance policy in place, you can protect your family against the financial burdens associated with the loss of income after your death.

Read More

Understanding Term Life Insurance

Protect your family from facing a financial burden after your death with a term life insurance policy.

Read More

Why Life Insurance Matters

Life insurance can help you protect your loved ones financially in the event of your death. Learn more about why it matters.

Read More

Common Term Life Insurance Exclusions

Life insurance pays out a death benefit when you die, but there are a few common exclusions that could prevent your beneficiaries from receiving any money.

Read More