Filing a life insurance claim is not complicated, but it requires gathering specific documents and following a process that varies slightly by insurer. If you are a beneficiary navigating the claims process after a loss, here is exactly what to do and what to expect.
Step 1: Locate the Policy
Your first task is finding the life insurance policy or the insurer’s contact information. Check the deceased’s files, email accounts (search for insurer names or “life insurance”), safe deposit box, and financial documents. If you know the policy exists but cannot find paperwork, check with the deceased’s employer (for group life coverage), financial advisor, or attorney.
The National Association of Insurance Commissioners (NAIC) has a Life Insurance Policy Locator service that can help identify policies when you do not know which company holds them. This free service contacts insurers on your behalf.
Step 2: Get Multiple Certified Copies of the Death Certificate
You will need an official, certified death certificate — not a photocopy — to file a claim. Order more than you think you need. Most insurers require one per policy, and you may need additional copies for banks, investment accounts, the Social Security Administration, and other institutions. Ten to twelve copies is a reasonable starting point for most estates. Certified copies are obtained through the county vital records office where the death occurred.
Step 3: Contact the Insurance Company
Call the insurer’s claims department directly, not a general customer service line. The number is usually on the policy declaration page, or you can find it on the company’s website under “claims.” Notify them of the death and get a claims packet or a list of required documents. Many insurers now allow you to start the process online.
Step 4: Complete the Claim Form
The insurer will provide a claimant’s statement (also called a proof of death form). Fill it out carefully and completely. Required information typically includes:
- Your relationship to the deceased
- The policy number
- Your contact information and Social Security number
- How you want to receive the payout (lump sum, installments, retained asset account)
Some insurers also request a statement from the attending physician or coroner, depending on the cause and circumstances of death.
Step 5: Submit the Required Documents
Along with the completed claim form and certified death certificate, you may also need to submit:
- The original policy document (if you have it — not all insurers require this)
- Proof of your identity (government-issued ID)
- Proof of your relationship to the insured if you are not listed by name (e.g., a marriage certificate)
Submit everything together rather than piecemeal to avoid delays. Keep copies of everything you send.
How Long Does It Take?
Most life insurance claims are processed within 30 to 60 days after the insurer receives all required documents. Some claims are paid within a week. Delays typically occur when documents are missing, when the death occurred within the first two years of the policy (triggering a contestability review), or when the cause of death requires investigation.
If your claim is taking longer than 60 days with no clear explanation, follow up in writing and contact your state insurance commissioner if you are not receiving a response.
What the Contestability Period Means
Most life insurance policies include a two-year contestability period. If the insured dies within two years of taking out the policy, the insurer can review the original application for material misrepresentations — for example, a medical condition that was not disclosed. If the application was accurate, the claim should still be paid. If there was fraud, the insurer can deny the claim or reduce the payout.
After the two-year contestability period expires, the insurer cannot deny a claim based on application errors (except in cases of outright fraud).
How the Payout Works
You can typically choose how to receive the death benefit:
- Lump sum. The full benefit paid at once. Most common and often the most financially straightforward choice.
- Installments. Regular payments over a set period.
- Retained asset account. The insurer holds the funds in an interest-bearing account that you can draw from. Less common and generally not the best option since the rate may be below what you could earn elsewhere.
Life insurance death benefits are generally not subject to federal income tax for the beneficiary. However, if the payout generates interest (e.g., in a retained asset account), that interest is taxable. Consult a tax advisor if the estate is large or the situation is complex.
What to Do with the Payout
There is no rush to do anything with the money immediately. Give yourself time to grieve before making major financial decisions. If the amount is significant, park it in a high-yield savings account or money market fund while you assess your needs. Consider working with a fee-only financial planner before making permanent decisions about how to invest or use the funds.
Bottom Line
Filing a life insurance claim is a straightforward process that most people can handle without professional help. Gather the certified death certificates, contact the insurer promptly, complete the claim form accurately, and submit everything together. Most valid claims are paid within 30 to 60 days.