How long does a beneficiary have to claim proceeds from a life insurance policy? If months or years have passed since the policyholder’s death, should you worry about losing out on the benefit?
The short answer is “no.” There isn’t a time limit when it comes to claiming a life insurance payout. As long as the policy was active at the time when the insured person died—that is, the premiums were paid and there are no grounds for the insurance company to deny the claim—you’ll get the money. However, if you hope to get a timely payout, the earlier you can file, the better.
Key Takeaways
- There is no time limit on receiving life insurance death benefits, so don’t worry about filling a claim too late.
- To file a claim, you can call the company or, in many cases, start the process online.
- Expedite your claim by having a copy of the policyholder’s death certificate available, as well as their Social Security number and policy number.
- Once a claim has been filed and accepted, you can usually expect payment within 30 days.
- Each beneficiary must file their own claim.
How to Make a Claim
There are many reasons people delay claiming the death benefit from a life insurance policy. In some cases, they may not even know they’re the beneficiary of a loved one’s policy. In others, filing a claim is not a top priority while dealing with their loss.
If you’re the beneficiary of a life insurance policy—or even suspect that you might be—you should contact the insurance company shortly after the insured person passes away. Depending on the company, you may be able to visit its website to request that a claim form be mailed to you. Some insurers allow you to complete the entire process online.
The carrier will likely ask you to provide the insured individual’s name and date of birth. In order to expedite a claim, it may also request the insured’s Social Security number or policy number, as well as a copy of the death certificate.
Some policies have more than one beneficiary, so it’s important for each person to fill out a claim form in order to receive their payout. If you’re a contingent beneficiary—that is, you’re entitled to all or part of the death benefit if a primary beneficiary passes away before the policyholder—you may need to submit a copy of that individual’s death certificate as well.
Insurance companies are required to hold funds in reserve and to pay into their state's guarantee association fund. If they go out of business, claims will be paid from thecompany's reserves and if the reserves aren't insufficient, the guarantee association helps pay all or part of the claims.
How Long Do Claims Take?
While some companies may pay out within a few days, it can take one to two months for the insurer to send you the death benefit. And the payment can be delayed even further for a variety of reasons, such as if you sent in the wrong forms or the policy has lapsed. The company may also take longer to investigate the claim in certain situations. For example, if the cause of death is a homicide, the insurer must rule out the possibility that the person in line to receive a financial payout was involved in the incident.
In some cases, the insurance firm may outright refuse to pay the claim. If the policyholder dies within two years of taking out the insurance, the death generally falls within the “contestability period.” That means the company has the right to closely review the decedent’s medical history to make sure that all pertinent health conditions were disclosed when the policy was established. The insurer may also look for any risky activities, such as scuba diving, that the policy owner failed to report on their application and that led to their death. If the individual died by suicide during the first two years of the policy, the company may also have the right to withhold a benefit.
If you are having suicidal thoughts, contact theNational Suicide Prevention Lifelineat988 for support and assistance from a trained counselor. If you or a loved one are in immediate danger, call 911.For more mental health resources, see thisNational Helpline Database.
Uncertainty of Beneficiary Status
It’s always a good idea for insured adults to let loved ones know that they’re a beneficiary of a policy, yet that doesn’t always happen. If you’re not sure whether you’re in line to receive a payout, you can double-check by going online and using the National Association of Insurance Commissioners’ Life Insurance Policy Locator Service, which searches its member companies for matching policies.
This service is free, but it can take up to three months to hear back. Therefore, it’s a process you probably want to start only after scouring the deceased’s personal records for more definitive information about their policy.
Even if you don’t contact the insurance company, they may find out about the policyholder’s death eventually. That’s because insurers in some states are required to regularly cross-check their list of customers against the Social Security Administration Death Master File (DMF). When they find out about the death through that process, they’ll contact any beneficiaries, although it may take substantially longer this way.
How Long Does It Take to Collect Life Insurance?
Once a valid claim has been made, it usually takes about 30 days to receive the payment from the insurance company, although it can sometimes take 60 days.
How Long Does It Take to Process a Life Insurance Claim?
An insurance company usually takes several days to a month to process and pay out a life insurance claim. This is because the insurer must ensure the claim is valid, verify the death certificate, and confirm the beneficiaries' identities.
How Long Does a Beneficiary Have to Claim a Life Insurance Policy?
There is no time limit for beneficiaries to file a life insurance claim. However, the sooner you file a claim for a death benefit, the sooner you will receive your money. Filing as soon as possible makes sense because the insurer could need a month or longer to investigate the claim before paying out.
The Bottom Line
If you found out relatively late that you’re the beneficiary of someone’s life insurance policy, rest easy—there’s generally no time limit on when you can file a claim. However, there are a number of reasons why your payout can be delayed, so it never hurts to gather as much relevant information as you can and start the process sooner rather than later.