A life insurance claim is a request for a payout on a life insurance policy and is typically made when the policyholder dies. The beneficiary files a claim to collect the insurance payout. There are, however, ways that a policyholder can collect a payout from the insurance company before death. This can happen when the policyholder is diagnosed with a terminal illness or when the policy is sold in a viatical settlement. Sales of the policy through a viatical settlement can help the original policyholder to pay medical bills or other expenses.
Step 1
Research companies via the Federal Trade Commission or the Securities and Exchange Commission for legitimate companies that handle viatical settlements if you desire to sell your policy. Contact the company and make arrangements for the sale. Generally, a viatical settlement works the same as the sale of any other owned commodity. A price is agreed upon, the transaction is made and ownership of the policy transferred.
Step 2
Obtain a medical certificate from a physician if the policyholder has a terminal illness and has only a short period of time to live. Obtain a certificate of death from the county records office if the policyholder is diseased.
Step 3
Locate the life insurance policy and identify the insurance company that issued the policy. Life insurance policies have contact information on them.
Step 4
Contact the life insurance company and request a claim form. If the claim is for a terminal patient, ask about any additional information the insurance company may need. Make sure that the address is agreed upon for where to send the form after completion.
Step 5
Complete the life insurance form and send it, along with a certificate of death or medical statement concerning the terminal illness, to the life insurance company.
Step 6
Follow up by contacting the insurance company to make sure the claim was received and is being processed. Unless there are suspicious circumstances associated with the death, claims are generally processed within a few weeks and checks are sent.
Tips and Warnings
- There may be additional life insurance policies that a recently diseased person has previously purchased. Search through the diseased person's important papers for any additional policies.
- There is a two-year period of time called a contestability period that follows the purchase of a life insurance policy. If the policyholder dies during this period, the insurance company can investigate the facts concerning the insurance policy and the policyholder's death before paying the beneficiary.
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