How to File a Claim When You Lose a Loved One

Looking to file a claim with a life insurance company in Houston after losing a loved one? Read on and learn about the steps you will have to take.
mourning a death.

A death in the family is one of life’s most heartbreaking losses. If your deceased loved one was the primary breadwinner for your family, you could also be dealing with substantial financial challenges as you grieve. One way to alleviate a portion of the financial burden caused by a death in the family is to claim a life insurance policy as quickly as possible.

Replacement of this essential income is possible with the help of life insurance payouts. Gather the necessary paperwork and get in touch with your life insurance agency in Houston to get started. If you’ve recently lost a loved one, this post will guide you through the difficult financial decisions that must be made. Let’s take a look.

Step 1- Collect Necessary Documents

If you have everything in order, the claims procedure should go more quickly. The good news is that you only need three pieces of paperwork to collect a death benefit from an insurance policy.

Valid Death Certificate

Validated death certificates are a useful tool in the fight against identity theft. Getting a certificate is not typically something you have to do on your own. Instead, you’ll need to contact the funeral parlor or medical examiner who verified the decedent’s death time and location to obtain a copy. You can also contact your local public records office by telephone, physically, or online to obtain a copy.

Policy Document

Details regarding the life insurance coverage, such as the insurance number, death payout amount, as well as beneficiary names, can be found in the policy document. To verify that you are submitting a claim for the right insurance, the life insurance agency will cross-reference the details you provided on the policy and its records.

If you are unable to locate the policy document, you should contact to life insurance companies houston or the deceased person’s financial counselor.

Claim Form

This form, often called a “request for benefits,” is where important details about the deceased policyholder can be included, such as their insurance number and the circumstances surrounding their death. Once the life insurance company has processed your claim, they will ask you to verify your identity and how you wish to be compensated.

A burial ceremony in Houston

Step 2- Get In Touch With Your Life Insurance Company In Houston

After gathering the necessary paperwork, your next step is to contact the life insurance company that provided the life insurance plan to report the death and begin the claims process.

There is no statute of limitations on making a claim. As long as the insurance was in effect at the time of death, you are eligible to receive a life insurance payout at any point after the death of your loved one. Still, the quicker your claim is submitted, the faster you’ll receive payment.

Step 3 – Let Them Process Your Claim

When you’ve finished handling matters on your part, the life insurance company will conduct some preliminary inspections. The insurance provider will first verify the coverage is still in effect. If the policyholder fails to make the required premium payments, or the policy’s term ends before the policy is paid in full, the policy will lapse.

The insurance company representative will verify that you are the intended recipient of policy benefits. A valid government-issued photo ID, such as a driver’s license, birth certificate, or Social Security card, may be required. You may need further documentation if you aren’t a U.S. citizen.

Death benefits are often paid out in just a couple of days but might take up to sixty days based on the insurance company’s processing time. Life insurance companies in Houston texas are incentivized to pay out death benefits as soon as possible to avoid paying interest on the money they owe. Given that every state has unique requirements, it’s best to double-check with your insurer to determine its specific date.

funeral ceremony

Step 4 – Get The Death Benefit Payout

A death benefit can be received in several ways, each of which varies by insurance provider and policy. It’s usually between a lump amount and an annuity; both are easy and common choices.

Annuity

An annuity is an investment account into which a person’s death benefit is deposited and from which they receive regular payments starting from a predetermined date. Gains from investments are subject to taxation.

Lump Sum

You will receive the full death benefit in one lump sum and can use it immediately to pay for things such as the funeral, the mortgage, and other final bills. It’s also tax-free, so there’s no reason to worry about spending it.

attending a funeral

If you or someone you know is looking for life insurance in Houston, Franklin Life and Annuity is the best option for you. We are among the leading life insurance companies in Houston and have provided comprehensive funeral insurance for seniors in Houston, as well as final expense life insurance in Houston. Contact us today to learn more about us.