Life insurance proceeds typically go to the named beneficiary quickly and outside probate. Knowing the process helps you avoid delays.
How to file
- Locate the policy and the insurer's contact information.
- Request a claim form and provide a certified death certificate.
- Submit the claim with any other required documents.
- Follow up. Many insurers pay within weeks after receiving complete paperwork.
- Choose a payment option such as a lump sum.
Why claims are delayed or denied
- Death within the contestability period, usually the first two years, which triggers a review.
- Material misstatements on the application.
- Policy lapsed for unpaid premiums.
- Exclusions such as certain causes of death.
- Disputes about beneficiaries.
If there is a dispute
If the insurer denies the claim, ask for the reasons in writing and appeal. You can file a complaint with your state insurance department. Competing beneficiary claims may be resolved through interpleader in court.
Lost policies
Many states offer lost policy search services, and the National Association of Insurance Commissioners has a locator tool. Unclaimed property offices may also hold unpaid proceeds.
Frequently asked questions
Is life insurance taxable?
The death benefit is generally not income taxable to beneficiaries, but interest and estate taxes may apply.
Can creditors take life insurance proceeds?
Often protected when paid to a named beneficiary, but rules vary.