Filing a Life Insurance Policy Claim
Life insurance is designed to provide almost immediate financial relief to the affected party in the event of a death in the family.
Still, before you try to collect your cash, there are a few things you should know.
First, you should either deal with the insurance broker or the life insurance company directly. They will be able to help you fill out any necessary forms and assist you with collecting the death benefit. You will also need to supply certified copies of the death certificate. One copy must be submitted for each life insurance policy claim.
Once you submit the claim, you should receive a settlement shortly thereafter. It may be in a single lump sum, which offers immediate need and the most flexibility, or in a series of installments. This will depend upon the policyholder’s decision or your preference.
You might be able to have the life insurance company deposit the money into an account, where it will accrue interest until you withdraw it. This is known as an interest income option. Other life insurance companies may place the money into a money market account if you do not need the money immediately.
There is also a life income option. This is similar to an annuity, meaning you will receive income for life. How much depends on the death benefit amount, your age and gender and the age of the insured at the time of death.