How to File a Life Insurance Claim: A Step-by-Step Guide for Beneficiaries

Step 1: Find the policy

Look for the policy document, premium notices, bank statements showing payments to an insurer, or a note in the person's important papers. Ask their employer, union, and financial advisor too — workplace coverage is easy to forget.

• Use the NAIC Life Insurance Policy Locator (free) to ask participating insurers to search for policies on the deceased.
• Check your state's unclaimed property website; unpaid benefits are eventually turned over to the state.
• Look for accidental death coverage tied to credit cards, bank accounts, mortgages or travel bookings.

Step 2: Get certified death certificates

The funeral home normally orders certified death certificates for the family. Order several — insurers, banks, pension plans, the DMV and others each may need one. Most insurers accept a certified copy, not a photocopy.

Step 3: Contact the insurer

Call the insurer's claims department or go through the agent who sold the policy. You'll need the policy number (if you have it), the deceased's full name, Social Security number, date of death, and your relationship. Many insurers now let you start the claim online.

If a funeral home needs payment before the claim pays, ask whether it accepts an assignment of benefits — the insurer pays the funeral home directly from the death benefit and sends the rest to you.

Step 4: Complete the claim form

Each beneficiary usually files their own claim form. Expect to provide:

• The completed and signed claimant's statement.
• A certified death certificate.
• Your ID and Social Security number or tax ID.
• How you'd like to be paid — lump sum or other settlement options.
• Sometimes extra documents: an attending physician's statement, an autopsy or police report, or proof of guardianship if the beneficiary is a minor.

Step 5: Choose how to receive the money

• Lump sum: The full amount at once — the most common and flexible choice.
• Retained asset account: The insurer holds the money in an interest-bearing account you can write checks from. Convenient, but compare the interest rate with a high-yield savings account.
• Installments or an annuity: Payments over a period or for life, useful if you want help pacing the money.

How long it takes

Once the insurer has everything it needs, most claims are paid within about 30 to 60 days — often faster. Many states require insurers to pay interest on claims that take too long. Claims can take longer when:

• Death occurred within the policy's first two years (the contestability period), so the insurer reviews the application for accuracy.
• The cause of death is under investigation or listed as pending.
• Beneficiary designations are unclear, outdated or contested.
• The beneficiary is a minor or the estate.

If a claim is delayed or denied

1. Ask for the reason in writing, along with the policy provisions it relies on.
2. Request a copy of the application and any records the insurer used.
3. Respond with missing documents promptly and keep copies of everything.
4. File a complaint with your state's department of insurance — it's free and insurers take it seriously.
5. For large or complicated denials, consult an attorney who handles life insurance disputes.

Taxes on life insurance payouts

Death benefits paid to a named beneficiary are generally not subject to federal income tax. Interest earned between the date of death and payment (or in a retained asset account) is taxable. Very large estates may owe estate tax if the deceased owned the policy. A tax professional can confirm your situation.