man writing on paper by Scott Graham courtesy of Unsplash.

What to do as a life insurance beneficiary

Jason Piper |
Receiving funds for a life insurance policy can help relieve financial stress in a very difficult (and potentially expensive) time. If a loved one has named you a beneficiary for their life insurance policy, there are several things to do once that person has passed. 
 
Obtain a Certified Copy of the Death Certificate: This is a crucial document needed to file a claim. You can typically get it from the funeral home or the vital records office in the county where the death occurred.  
 
Locate the Life Insurance Policy:

If you can find the original policy documents, that's ideal. They contain important information like the policy number and the insurance company's contact details.  If you know ahead of time that you are a beneficiary, it may be wise to ask the policy-holder where to find the documents when the time comes.

Contact the Insurance Company:
Once you have the policy information or have located the insurance company, contact them to inform them of the insured's death and your intention to file a claim. They will guide you through the claims process and provide you with the necessary forms.  

Complete and Submit the Claim Form:
Fill out the claim form accurately and completely. Gather any required supporting documents, such as the certified death certificate and your identification.  Submit the completed form and documents to the insurance company.
 
Choose a Payout Option:
Life insurance companies typically offer a few payout options:
  • Lump sum: A single payment of the entire death benefit.  
  • Installments: Payments made over a period of time.  
  • Interest income: The death benefit is held by the insurance company, and you receive regular interest payments.
Seek Professional Advice if Needed:

If you have any questions or concerns during the claims process, don't hesitate to seek advice from a financial advisor, attorney, or accountant. We can provide guidance on how to manage the death benefit and make informed financial decisions.

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