Many people choose to buy life insurance to protect their families and at the same time leave them a non-taxable amount of money at the time of their death. These people want their loved ones to have some sort of security after they are gone. When the time comes for you to claim the insurance settlement, you may still face some hassles, but you don’t have to fret. There are many different ways to help you to handle a life insurance claim settlement, continue reading, so you can be aware of how to handle any issue.
1. Get The Policy Details and Organize Documents
If you are lucky, you will be aware of the deceased’s life insurance policy and where they located the policy. In some cases, the policy may be located in a bank’s deposit box, this, however, can delay the settlement. If you failed in locating the policy, you must immediately contact the insurance company. Same thing if you find the policy, you must still inform the insurance company about the death of the policyholder on time to avoid any delays. After you inform the insurance company of the policyholder’s death, you must provide certain documents. Make sure that all your documents are organized because if any documents go missing, this will cause a delay.
2. Check For Other Policies
Some people often have more than one insurance policy. These insurance policies may include accidental death or dismemberment policies. In order for you to know about the other insurance policies, you should check the human resources representative of the deceased. If the policyholder died in an accident while traveling and had travel accidents insurance, you might be entitled to further benefits. Keep in mind that you should also check for government benefits. Check the state eligibility map is recommended if you face any problems, and you need to take action depending on the state you live in and download a life settlement application to submit a case.
3. Acquire Copies of The Death Certificate
When you file an insurance claim, you must have solid proof that the policyholder is dead. This is why you will need to provide a copy of the death certificate. You can ask the funeral director to help you obtain copies of the policyholder’s death certificate. The certificate is usually sent to you within a few weeks after the death. In some cases, your loved one may only be a missing person, so you won’t have a death certificate available. In this case, you will have to get the court to state that the person is presumed dead and get an alternative document to the death certificate.
4. Ask For Claim Forms
Claim forms are just one of the forms you will need to obtain when settling a life insurance claim. The life insurance company will have a representative that will help you to obtain these forms. Of course, at a sensitive time like when you have just lost a loved one, you may not be able to fill up any forms that you may be required to. So in this case, you can ask your lawyer or the insurance agent to help you out but bear in mind that you must sign it yourself. If there are any other people named in the policy, that other party will have to fill out the claim forms as well. Remember to follow all the directions from the insurance company, so your claim proceeds quickly.
5. Submit The Forms
Once you finish filling up the forms, you must submit them immediately along with the death certificate of the policyholder. Returning the forms and the death certificate with a requested return receipt is a good idea, so you will be able to track the papers. This will also make it easy for you to know when the forms will arrive. Usually, checks take from days to weeks to arrive in the mail, however, if you have done everything right, the arrival of the check for your claim won’t take that long.
6. Method Of Payment
You can choose how you want to be paid from the available methods of payment. If you have any immediate expenses that need to be paid, you can request a lump sum. The insurance company may also pay you the principal amount and interests in installments. You can opt to choose the life income option which aims to stretch payments for the rest of your life. There is also an option that allows the money to remain intact and the insurance company will pay you the interest. In the case of your death, the money will go to the person of your choice.
If you want to get your settlement claim without any hassle, make sure to avoid any form of delays, file all your papers correctly, and listen to the advice of your insurance agent. No doubt that losing a loved one is hard, but you can use the money they left you to live the kind of life they were hoping for you.