How to File a Claim for Insurance

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According to insurance and investment advisor, Brian Ashe, filing a term, whole, or universal life insurance claim will most likely be the easiest part of the estate settlement process. Whether the deceased's policy is for whole life insurance, term life insurance, or universal life insurance, the filing procedure is basically the same-and fairly straightforward.

"Most of these claims are settled within about 10 days of receipt by the insurance company," Ashe says. That is, unless the deceased passed away within the first two years of the policy becoming effective, in which case the "contestability period" is still open. That means settlement can be delayed if the insurance company has questions about the cause of death or other matters.

Assuming that the whole life insurance policy has been in force for more than two years and the cause of death is not up for debate, here is some advice for filing your claim.

First, can you lay your hands on the policy? Many people store important documents in a safe deposit box, not realizing that it may be temporarily sealed after their death. Ideally, your loved one has left clear instructions on where to find everything after his or her death. But if you cannot locate the policy, don't give up. You can send a written inquiry to the Missing Policy Service of the American Council of Life Insurance, 1001 Pennsylvania Avenue, NW, Washington, DC 20004-2599. Include a self-addressed business size envelope. Your inquiry will be forwarded to nearly 100 large life insurance companies in an effort to locate the lost policy. You can also try contacting your state insurance department and that of any other state the deceased lived in.

Next, call your insurance broker. He or she knows the system well and isn't beset by grief and will assist you with filling out forms, such as the insurance company's death claim. Your broker can also be an intermediary with the insurance company during a difficult time. If you know who the deceased's agent was, even better, but if you don't you can deal directly with the insurance company. Don't be afraid to ask what procedures to follow and if there's an agent to assist you.

You'll need certified copies of the death certificate and perhaps some other proof of death, such as an obituary notice.

"It depends on the company," says insurance specialist Mark Garetz, based in San Ramon, California. "They like it if there's some other corroboration of the death, but a certified death certificate will suffice."

You should be able to obtain one from the funeral director. File it with the claim form and that's that. The next decision will be how you'd like to receive the proceeds-in a lump sum for you to manage, in payments managed by the insurance company, or perhaps held for another beneficiary of your choosing (after your death) from which you draw only the interest.

Whatever you decide, says Ashe, "When a loved one passes, it's a conflicting time for the heir." He tells clients not to make any major financial decisions about how to spend or invest the money for six months to a year. "People are coming at you because they know you've got these funds. It's not the best time to make objective decisions with your finances."

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