A fair and affordable life insurance policy is like an investment. Your premiums make up the death value amount and cash account in some types so that your family does not have to struggle financially after you are gone. Keeping that in mind, you should choose your life insurance policy wisely. After the policyholder’s death, it is essential to make a claim and get the death benefit. Considering how losing your loved ones can be overwhelming, we often forget about claiming their policy. Some providers do approach you there; however, a lot of times, this is not the case. But you do not need to worry about that as here is a small guide to help you;
Finding the Life Insurance Policy
The first thing to do in the process of claiming is to find the policy of your loved one. You can find it in safe places or maybe approach the provider directly. You can collect a hard copy or soft copy as long as it’s the right one. Once you find the policy, make sure that you check the type. If it is a term, then see if the time has ended or not. Also, see how much it is worth.
The most crucial document that verifies the death of your loved one is the death certificate. So make sure that you have it and also make multiple copies of it for later use. Some other forms need to be filled, so make sure that you get them done on time too. Once you get all these documents ready, contact the life insurance policy provider to file a claim. After submitting these documents, you have done your job. Now the provider has to verify the death and then send you the amount either electronically or via cheque. Also, if there are more than one policy’s beneficiaries, the amount will be divided as per the rules mentioned in the policy quote.
How Long Does It Take for Payout?
In the best-case scenario, you get the payment in ten days. However, if there is an issue with the documents or any other problem, the insurance provider might take some time to approve the process and the payment. For example, if there is death within two years of getting the policy, the provider will take a reasonable amount of time to check if there is any fraud or not. If the death happened due to some complicated issues, it would also affect the amount of time it will take to receive the death benefit.
How Will You Receive It?
Primarily there are two ways of payment; lump sum and installments. The lump-sum is when you get the whole amount in one turn only. This way, you can get to manage and spend the money you want. The other way to go about this is by using the installments option. By applying for this option, you get the payment in a series of installments over a certain amount of time. This way, if you think that you won’t manage all the money together, you can always go for installments.
The life insurance death benefit amount helps the family to get through financially challenging times in the absence of their loved one. To claim this amount, you need to follow the process as mentioned above. It is straightforward, as long as all the documents are clear. You have the choice to either go for lump sum or installments. You can choose according to your needs. So, what are you waiting for? Check it out now!