How to Claim Life Insurance After a Death (and Find a Policy You Didn't Know About)
The short answer: call the insurance company (or the employer's HR office, if the cover came through work), tell them the person has died, and ask for a claim form. You will usually need the policy number if you have it, a certified copy of the death certificate, and your own ID. If you don't know whether a policy exists, use the free NAIC Life Insurance Policy Locator, which sends your request to participating insurers; if one of them finds a policy naming you, it contacts you directly. The money goes to the named beneficiary, not through the will, and in most cases it is not used to pay the person's debts.
Nobody wants to think about money in the first week. But a life insurance claim is one of the few things after a death that pays you rather than costs you, and it can cover the funeral bill. This guide is for the person who has to make the call.
First, Who Can Claim
A life insurance payout goes to the beneficiary named on the policy. That is a contract between the insured person and the insurer, so it sits outside the will and outside probate. If you are named, you claim it yourself. You do not need to wait for an executor.
Three situations change that:
- The beneficiary is "my estate", or every named beneficiary has died. The money is paid into the estate and handled by the executor, and creditors can reach it.
- The beneficiary is a minor. Insurers generally won't pay a child directly. Expect to need a court-appointed guardian of the property or a trust, depending on the state and the policy.
- The policy was assigned. If the family already signed the policy over to the funeral home (an "assignment", explained in what to do if you can't afford a funeral), the funeral home is paid first and the rest comes to the beneficiary.
If you are not the beneficiary but you are the executor or next of kin, you can still notify the insurer. They will deal with whoever is named.
Finding Out Whether There Is a Policy
Many families don't know. People take out cover years before they die and never mention it. Before you conclude there is nothing, go through these:
Their papers. Look for a policy document, annual statements, or letters from an insurer. Check the safe deposit box, the desk drawer, and the filing cabinet.
Bank statements. A regular payment to an insurance company is the clearest clue. Go back at least a year, because some premiums are paid annually.
Their email and mail. Insurers send yearly statements and premium notices. Keep their mail coming to you for a few months; letters that arrive after the death often answer the question.
Their employer, former employers and unions. Group life insurance through work is common and easy to forget, because the person never paid for it directly. Ask HR at their current and recent employers. Some unions and professional associations offer cover too. Who to notify when someone dies has the rest of that call list.
Their financial adviser, accountant or lawyer. Any of them may know about a policy, or have one on file.
The NAIC Life Insurance Policy Locator. The National Association of Insurance Commissioners runs a free online tool for exactly this. You enter your own details and the deceased's details from the death certificate: legal name, date of birth, date of death, Social Security number, veteran status, and your relationship to them. The request goes to participating life insurance and annuity companies, which search their records. In the NAIC's words, if a policy is found and you are the beneficiary, "the life insurance or annuity company will contact you directly." If nothing is found, or you are not the beneficiary, you will not hear anything, so don't treat silence after a few weeks as a final answer. The NAIC itself holds no policy information; it only passes the request on.
Unclaimed property. If an insurer found out about a death and couldn't reach the beneficiary, the money may have been handed to the state as unclaimed property. Search each state the person lived in through that state's unclaimed property office or the multi-state search at MissingMoney.com.
Military and federal cover. If they served or worked for the federal government, ask about the programs that applied (Servicemembers' and Veterans' Group Life Insurance, or the federal employees' program) through the relevant agency. Veterans' families should also read about burial benefits, which are a separate claim.
Filing the Claim
Once you know the insurer, the process is usually simple.
- Call or go online. Tell them the policyholder has died. Give the policy number if you have it; if not, give the name, date of birth and Social Security number. Ask them to confirm who the beneficiaries are and to send the claim form.
- Get a certified copy of the death certificate. Most insurers want a certified copy, not a photocopy. Order several when you order them for everything else. If something on the certificate is wrong, fix it first, because a mismatch in name or date can hold up the claim.
- Fill in the claim form. Each beneficiary usually files separately. You will be asked how you want to be paid.
- Send it and keep copies. Write down the claim number, the date you sent it, and the name of anyone you speak to.
Insurers may ask for more if the death was recent after the policy started, if the cause of death was not natural, or if the death happened abroad. They may want medical records or a police or coroner's report. If an autopsy or investigation is still open, ask the insurer what they can accept in the meantime.
How you'll be paid
Most people take a single lump-sum check or transfer. Some insurers offer to put the money into an account held by the insurer that you draw on with checks, or to pay it out in instalments. These can be fine, but they are choices, not the default you have to accept. If you want the whole amount in your own bank account, say so on the form.
You do not have to buy anything to receive the payout. If a claim call turns into a conversation about investing the money with the same company, you can decline and still be paid.
How Long It Takes
Many straightforward claims are paid within weeks of the insurer receiving everything it asked for. The clock usually starts when the paperwork is complete, not when you first called, so the fastest thing you can do is send everything at once.
Some things slow it down:
- The policy is new. Most policies have a contestability period, commonly two years from when the policy started. If the death falls inside it, the insurer can review the original application for misstatements before paying. That review takes time. It does not mean the claim will be refused.
- The cause of death is pending or under investigation.
- There is a dispute between beneficiaries, or an ex-spouse is still named. Insurers will not pick a side; they may hold the money or pay it into court.
- The policy had lapsed. If premiums stopped, ask the insurer for the date cover ended and whether there was a grace period. Don't assume a missed payment ended it.
If the Claim Is Delayed or Denied
Ask for the reason in writing, with the policy wording it relies on. Then:
- Check the facts they relied on. Errors in dates, names and medical records do happen.
- Ask about the insurer's internal appeal and the deadline for it.
- Contact your state insurance department. Every state has a consumer line that takes complaints about claims handling, at no cost. The NAIC website lists them by state.
- For a large policy or a denial based on the application, talk to a lawyer who handles insurance claims before you sign anything that settles the claim for less.
If the cover came through an employer, the appeal route may be set by the employer's plan rather than state law. Ask the plan administrator for the plan documents and the appeal deadline in writing.
Does It Pay Their Debts?
Usually not. A payout to a named beneficiary belongs to that person, not to the deceased person's creditors. The exceptions (the estate is the beneficiary, or a few state-specific rules) are covered in debts after death. Taxes are a separate question: ask an accountant how the payout and any interest added to it should be reported.
Common Questions
Is there a deadline to claim life insurance? Claim as soon as you can. Insurers generally still pay late claims, but delays make records harder to find, and unclaimed money can be passed to the state. It can still be recovered from there.
Can I claim if I can't find the policy document? Yes. The insurer can find the policy from the name, date of birth and Social Security number.
Can the funeral home be paid from the policy? Yes, through an assignment. The insurer pays the funeral home directly and sends the rest to you.
What if two people both say they are the beneficiary? The insurer goes by the most recent beneficiary designation it holds, not by the will. If that is challenged, it may pay the money to the court and let the court decide.
Once the paperwork is moving, there is room to remember them properly. GetMemorial gives your family one place to keep their photos, stories and tributes. Start an online memorial when you are ready.
