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What to Do If You Have a Life Insurance Claim
What do you do when you have a life insurance claim?by Gary Woolman
When there's a death in your family, life insurance can provide almost immediate cash to meet your pressing needs. In fact, some of you reading this article may already have been through the process of placing a life insurance claim. You may have even been a beneficiary following a close relative's death. Because we all may face this process at some point, you ought to know a bit more about what the process entails, so you know where to turn when the time comes.Here's a brief outline of what to do:
- Call Your Insurance Professional. He or she can help you fill out any necessary forms and act as a liaison, as well as help you initiate your claim and determine the most appropriate settlement option to meet your needs. Although your insurance advisor can assist you with the details of filing your claim, you'll find it helpful if you've kept the policies at hand. Life insurance policies, in fact, should never be kept in a safe deposit box. In most states, such boxes are sealed upon the death of the owner. Although an executor can obtain access to the box to locate a will and insurance policies, this can delay you procuring funds when they're needed most.
- You'll need to supply each insurance company with the following items:
- A complete beneficiary claim form, filled out by the person(s) to whom proceeds are payable.
- A certified copy of the Death Certificate, available from your funeral director.
- The policy(ies)
- Contact others who will help you:
- The deceased's employer can let you know whether you and your family may be beneficiaries of a company life insurance policy or be eligible for hospital and/or disability benefits. You can also ask about pension fund contributions, accrued vacation or sick pay, unpaid commissions, credit union balances or service awards.
- You Accountant knows a lot about the deceased's finances- business arrangements, tax records, financial balance sheets and other important affidavits. If you don't have an accountant, you will want to contact one soon to learn about how this death will affect your tax status.
- Your local Social Security office can tell you whether you are eligible for a lump sum death benefit-but you must apply within a specified period in order to obtain it.
- 4. Your regional Veteran's Administration can help beneficiaries of armed forces veterans determine forthcoming benefits. Veterans' Administration benefits differ depending on the cause of death and whether or not it was service-related, but you're usually eligible for some level of a reimbursement for burial expenses and an American flag for the casket. Burial in a national cemetery is usually also provided, including a grave site, internment and a marker.
Regional office addresses:
Eastern United States: 500 Wissabickon Ave.
Philadelphia, PA 19010
Western United States: Fort Snelling
St. Paul, MN 55111
- The Civil Service Commission can assist if the deceased was in the Federal Civil Service. You and your children may be eligible for certain benefits, including group life insurance, a pension plan or medical benefits.
- Deceased's member organizations like service, professional, fraternity or trade organizations, associations, and clubs may have benefits for you and your dependents. Besides group life insurance, pension plans and medical benefits, these organizations might have credit unions, return unused annual dues or establish special funds for members and survivors.