$2.17 for Children or Grandchildren
How Long Does It Take to Get Life Insurance Money?
How Long Does It Take to Get Life Insurance Money?
In the days following the loss of a loved one, how and when the life insurance benefits are going to arrive is the last thing a person wants to have to worry about. Policyholders, however, often intend these benefits to aid their loved ones in those initial days of loss.
Life insurance benefits might be needed to help pay funeral costs. They might also be needed to help a widowed spouse to continue to pay bills or to take time off work to mourn. Below you’ll find information that can help you or a loved one navigate through this process.
How do I know if I will receive benefits?
Most of the time, people who are named beneficiaries of life insurance policies are aware that they are in line to receive benefits. It is common for policyholders to have conversations with their beneficiaries about this, including the amount of said benefits. Also, most people choose close family members, such as spouses and children, as their beneficiaries. However, numerous claims go unfiled every year resulting in funds that never reach their intended beneficiary.
If you suspect that you might be the beneficiary of a policy, there are steps you can take to find out. These include: looking through the deceased records carefully, checking bank statements to see if payments have been made to insurance companies, and reviewing tax returns for interest income from insurers. You can also check to see if your loved one had any policies through their employer naming you as a beneficiary.
When will benefits come?
Beneficiaries of life insurance policies often face uncertainty as to when funds will be received. They aren’t sure what steps to take to move the process forward. Some beneficiaries aren’t even aware that there are steps they need to take. This lack of understanding can seriously impede the process and cause beneficiaries to have to wait much longer than necessary to start receiving payments.
The good news is that most insurance companies respond to claims within 60 days. Exactly how soon a beneficiary receives payment is, in part, determined by how quickly the claim is filed. The sooner the claim is filed, the better the chance you will receive funds fast. However, there are a few exceptions to the 60 day average.
For instance, if a policyholder dies within two years of purchasing an insurance claim there could be a delay. Many policies contain something called a “two year contestability clause” which helps the insurance carrier protect against fraud. After determining that you are owed a payout, the next step would be to gather the necessary paperwork to properly file a claim.
Which documents will need to be submitted?
Exact required documentation may vary depending on the specific company issuing the claim. This information can often be found on the insurance company’s website. You may even be able to download it as a packet or request to have it sent via mail.
Be sure to find out what is required from the insurance company you are filing with. Common paperwork requested can include an original or certified copy of the death certificate (an uncertified copy will not suffice) and up-to-date identification information for the policyholder, such as most recent address.
How are insurance claims paid out?
A common question concerns how the benefits of an insurance policy will be paid out. Historically, life insurance policy proceeds have been paid out to beneficiaries in a lump sum. To this day, this remains the most common default payout option for most policies. Most insurance companies will give the option of either monthly payments or a lump sum.
More recently, the option to receive installment payments or annuities have been adopted by many insurance companies. Policyholders may be able to select how many years the installment payments will continue, from short term to long term. Many policyholders prefer the idea of installment payments, as it guarantees that their loved ones will continue to receive their financial support for years to come.
How to get claims paid as quickly as possible
To summarize, take these steps to get your claim paid out as quickly as possible:
- Find out as soon as possible if you are set to receive benefits
- Contact the insurance company to find out what paperwork they require
- Gather paperwork and double check it for accuracy before filing
- Communicate with an insurance agent immediately if something has gone wrong
You might also be interested in...
- 6 Foods That Feed Your Brain
- 6 Things To Give Up This Year
- 7 Common Relationship Deal-Breakers
- 7 Facts Women Should Know About Heart Disease
- When You Already Feel Like Giving Up On Your Resolutions
- Amazing Tips To Help You Get Through Allergy Season
- Anti-Aging Tips And Tricks
- Are Protein Shakes A Healthy Choice?
- Are We More Stressed Than the Rest of the World
- Are You Ruining Your Relationship
- Are You Socially Awkward?
- Attitude Of Gratitude
- Beating Work Burnout is Easier than You Think
- Benefits Of Yoga And Meditation
- Beware Of Relationship Killers
- Big Cities Surprisingly Great for Outdoorsy People
- How To Boost Your Self Confidence
- Can Saying You’re Sorry Save Your Life?
- Can White Wines Be Healthy Too
- Changing Careers In Your 40s
- Divorced, But Are You Ready To Start Dating Again?
- Do You Fight Like Other Couples?
- When you don't have a green thumb
- 8 PreWorkout Meals To Maximize Results
- Financial Benefits Of Co-Habitation vs Marriage
- Financial Tips To Follow During And After Divorce
- Five Ways To Lead A Regret-Free Life
- Why Your Friends Should Be Jealous If You’re 30-Something And Single
- Can A Full Moon Really Affect People?
- Getting a Life Insurance Quote Without Getting a Medical Exam
- Health Benefits Of Almond Milk
- The Health Benefits Of Avocado
- Health Benefits Of Cinnamon
- How To Choose A Multivitamin?
- How To Make The New Year The Best One Yet
- How To Prepare For Your Next Interview
- Is a Co-worker Making You Hate Your Job?
- Is The Ketogenic Diet Safe?
- Is Music The Antidote For Depression
- Is Your Diet Making You Feel More Stress?
- How To Keep Your Facebook Safe From Scammers
- Life Insurance Companies Offer Protection
- Living With Fibromyalgia
- How To Look Better Than Ever At 40
- More Big Cities Surprisingly Great for Outdoorsy People
- Natural Remedies For Acid Reflux
- No Medical Exam Life Insurance—Simple Application
- 10 Olympic Sports That Didn’t Make the Cut
- Outrageous Facts about U.S. Presidents
- Ovarian Cancer--The Silent Killer
- Overcoming Frustration
- How To Get Relief From Credit Card Debt
- Is There A Risk of Heart Disease Due To Drinking?
- Shocking Food Facts that May Change the Way You Eat
- Sick Of Running? 5 Cardio Routines You Should Try Instead
- Smart Tips for Getting Paid What You Really Deserve
- Strange Laws You Don't Even Know You're Breaking
- The Singles’ Guide To Life Insurance
- Things To Remember When Buying Life Insurance
- Top 5 Things You Need To Know About Life Insurance
- Top 6 Factors That Destroy Your Credit Score
- Top Ten Health Tips For Active Women Over 50
- Treating Menopause Symptoms With Alternative Medicine
- Want To Know How Your Interview Went? Think Of It Like A First Date…
- What Every Woman Should Know About Breast Cancer
- What Is Ruining Your Workout
- What Most 30–Somethings Wish They’d Known in Their 20s
- Whats Really To Blame For Your Bad Mood
- Why You Keep Overeating and How to Stop
- Why You Need To Talk About Life Insurance
- You Can't Afford to Believe These Women's Health Myths
- 5 Plants To Keep In Your Bedroom
- Five Simple Ways To Protect Your Retirement
- The Best Ways To Cover Gray Hair
- 5 Hidden Causes Of High Blood Pressure
- 10 Steps To Get Through The Holidays Stress-Free
- 5 Ways To Break A Bad Habit
- The 5 Benefits Of A Veterans Home Loan
- Top 5 Prevention Tips For Heart Disease And Stroke
- 5 Surprising Facts About Low-Carb Diets
- 7 Ways To Live A Happier Life
- 6 Tips To Be More Productive
- 7 Steps To Help Someone Who Is Grieving
- 4 Reasons Why Your Diet Resolutions May Be Counterproductive
- Deciding On Braces After 40
- Why A Massage May Be Helpful For Back Pain
- How To Have Self-Compassion
- How To Stay Productive When You Don’t Feel Like it
- Foods To Eat When You’re Feeling Stressed
- How Helping Others Can Make You Happier
- Why You Don’t Have To Fear Fat When Dieting
- 6 Things You Should Do To Live Without Regret
- How To Create Your Own Happiness
- How To Get Immediate Stress Relief
- Why It May Be Time To Make Some Changes
- Why You May Want To Sleep On Your Left Side
- 4 Health Symptoms You Should Never Ignore
- Dos And Don’ts Of Job Interviews
- How You Can Benefit From Showing A Little Love
- Can Debt Affect Your Health?
- What Women In Their 50s Know
- Hidden Reasons For Night Sweats
- 5 Simple Lung Cancer Prevention Tips
- Why You Should Get Out Of Your Comfort Zone Now
- 7 Tips To Keep Runners Safe
- How To Stop Emotional Eating Now
- Reach Your Potential In 4 Steps
- 5 Ultimate Weight Loss Hacks
- Can Social Media Help With Weight Loss
- How A Good Impression Can Change Everything
- Must-Know Travel Tips If You Want To Stay Safe
- Three New Ways To Make Big Changes
- The Hidden Benefits Of Ginger
- 5 Tricks To Slim Down Fast
- How To Finally Wake Up Better
- 5 Chemical-Free Ways To Keep Skin Young
- The Secret Benefits Of Salt
- Why Be An Organ Donor?
- How To Relieve Stomach Ulcers Fast
- Disaster Relief Do’s And Don’ts
- How To Say Goodbye To A Loved One
- 4 Tricks To Prevent A Cybercrime Attack
- The Dos And Don’ts Of Getting A Tattoo
- What To Do When Hearing Loss Strikes
- How Auto Ship Programs Keep Scamming People
- How To Decrease Stress And Increase Productivity
- Unique Relief For Chronic Neck Pain
- Ransomware–What It Is And How To Avoid Attack
- Five Reasons To Drink More Tea
- 5 Major Life Events That May Require Life Insurance
- 6 Reasons Newlyweds Should Consider Life Insurance
- How Long Does It Take to Get a Life Insurance Policy?
- How Long Does It Take to Get Life Insurance Money?
- What You Need To Know About Mortgage Assistance Programs
- How to Build a Better Resume: 7 Helpful Tips
- 4 Things Women Should Do During Breast Cancer Awareness Month
- 10 Ways to Get More Out of Life
- Who Owns Globe Life and Accident Insurance Company?
- Can I Buy Life Insurance Online?
- Cancelling My Life Insurance. What are My Options?
- Can Life Insurance be Purchased on Anyone by Anyone?