How Long Does A Beneficiary Have To Claim A Life Insurance Policy?

How Long Does A Beneficiary Have To Claim A Life Insurance Policy? People waste time claiming the life insurance payout that’s in their name for so many reasons, and in some other cases, a person might also not be aware that he is the beneficiary of a loved one.

However, if months or years have already passed, is there any need for the beneficiary to be concerned or worried that they might miss out on the benefit. The answer to this question is NO because there is no time limit to when a beneficiary can receive a life insurance payout.

As long as the life insurance policy remained active till the death of the insured person meaning that they paid all premiums, then the insurance company has no grounds to dismiss the claims.

You would get the money if you are a beneficiary regardless of how long you have delayed, but if you want to get the money sooner enough, it would be better to file for a claim early enough. If you want to start a claim, then you need to get a call across to the insurance company or, in some cases, start up the online process.

How Long Does A Beneficiary Have To Claim A Life Insurance Policy

You need to contact the insurance company if your loved one has passed away (if you are aware that you are the beneficiary) or even if you suspect that you are the beneficiary. Depending on the company you are dealing with, you might need to go online to mail a claim form to you.

It allows some beneficiaries to start up the claims process online. There might be more than one beneficiary in some cases, so each beneficiary should file a claim form to receive their payout.

How Long Does A Claim Take?

You might be asking how long the claims process would take, and the answer is it lasts between a week to two months. There are so many reasons that might lead to the delay of the insurance life payout, and sending in the wrong form is a popular reason.

Investigating the claim if what caused the insured person’s death is homicide might also take a longer process by the insurance company. It is done to figure out if the person who wants to receive the payout has a hand in the insured person’s death.

There are also cases where the firm in question here might decide not to pay out the claim. There is something referred to as the contestability period, which refers to the insured person’s death two years after taking out the insurance.

It simply means that the insurance company has the right to review the medical history of the deceased person to check if the health conditions are the same as those documented in his insurance records. Insurers also look out for other causes of death.

These causes could be risky activities like skydiving. The policy owner did not disclose to the insurance company, and the insurance company also has the right to withhold the life insurance payout if the policyholder committed suicide.

Insurance companies struggle with beneficiaries not knowing they have access to a particular amount of money after the death of their loved ones. If you want to be sure you have been used as a beneficiary, you can check online using the National Association Of Insurance Commissioners Life Insurance Policy Locator Service.

It would provide a list of beneficiaries with matching insurance policies, and even though this service is free for all, it might take up to months for anyone to get a response. There is also a perfect chance that the insurance company would find out about the death of your loved one even without you contacting them.

Most insurance companies are mandated to check their customer’s lists with the Social Security Administration Death File every month to determine if any of their customers have passed on.

Bottom Line

If you have found out that you are the beneficiary of a loved one who has passed away, you need to relax because there is no time frame attached to receiving the money. There are a couple of reasons why receiving the money might get delayed, which is why you should gather more information so you can round up the claims process sooner than later.