What You Should Know
- Most life insurance companies take between 30 and 60 days to pay death benefits
- The waiting period can be longer if the company decides it needs to investigate the death of the insured
- You can help the payout process go quicker and smoother by working with the company
No matter how much money you stand to inherit, losing a loved one is never easy. Between grieving and funeral arrangements, there never seems to be enough time to take care of everything.
End-of-life costs can be incredibly expensive. In fact, one of the biggest reasons people buy a life insurance policy is to help their loved ones pay off any medical debt and cover the funeral.
With all the stress of dealing with a loved one’s passing, life insurance is the last thing you want to deal with. However, you probably need access to the death benefit as soon as possible.
If you’re looking for quotes from life insurance companies that pay the policies within 10 days if death occurs to help your beneficiaries, you should shop around for rates. If you’re ready to see what quotes might look like for you, enter your ZIP code into our free tool today.
Life Insurance Companies That Pay the Policies Within 10 Days if Death Occurs
Life insurance companies want to pay the death benefit as soon as possible to avoid accruing interest on unpaid policies. Typically, that process takes between 30 and 60 days.
There aren’t any companies that promise a quick turnaround time on a payout. However, there are things you can do to get a payout in your hands as quickly as possible.
First, you should notify the insurance company as soon as you can. They’ll need a copy of the death certificate, but you probably won’t need to provide anything else after they receive it.
Life insurance companies don’t always know an insured has died, so you need to notify them. This speeds up the payout process and prevents the policy from being voided from missing payments.
Second, be ready to provide as much information as possible if the company needs more. The cause of death greatly affects how fast you get your payout, and there may need to be an investigation.
Wondering how long does a beneficiary have to claim a life insurance policy? Most claims for the death benefit of life insurance policies are right after the death, but you should have nothing to worry about if you’re late. As long as the policy is kept up to date, you can make a claim for years.
Life Insurance Beneficiary Rules
The first thing you should understand about the death benefit of your life insurance policy is how your company will pay your beneficiary. After all, if you want your payout to happen quickly, you need the right beneficiary.
Life insurance companies will send a check for the total sum of your death benefit upon receiving proof that you’ve died. If your beneficiary sends in the evidence and the company can easily reach them, your policy will be resolved quickly and smoothly.
However, if your beneficiary can’t be found, they can’t be paid. Without knowing where to send the death benefit, your policy will get stuck in place.
If you’re worried about your beneficiary, you have plenty of options to choose from – it doesn’t have to be a single person. You can choose:
• A single person, such as a spouse, parent, or a friend
• Multiple people, such as each of your children
• An estate
• A charity
• A trust, most commonly if you want a minor to inherit your life insurance
• A legal organization, such as a business
If you’re concerned about your beneficiary’s ability to accept your death benefit, consider choosing one of the above options.
What happens if you die a month after getting life insurance?
Worried about dying right after getting life insurance? All companies treat this differently, but your beneficiaries are unlikely to get the entire payout if you die right after getting life insurance.
Known as a contestability clause, the insurance company can investigate a death in the first year or two after a life insurance policy becomes active. They include these clauses in your contract to give themselves time to investigate for fraud.
If you die in the first year or two, your death benefit will likely take six months to a year to be paid out. The company will do a thorough investigation, especially if homicide is involved. If they can’t find any evidence of fraud, your beneficiary will receive your payout.
Most policies contain a clause for suicide within the first two years. If the insured takes their own life within that timeframe, the company can deny the life insurance claim.
Reasons Life Insurance Won’t Pay Out
While life insurance policies payout when people die from car accidents, illnesses, murder, and old age, there are plenty of reasons why your claim can be denied.
• Criminal activity: If you die while engaging in a crime – especially armed robbery – your claim will likely be denied.
• Extreme sports: For the most part, you’ll need special life insurance if you regularly engage in skydiving, scuba diving, surfing, or any other dangerous pastime.
• Fraud: If you lied on your application and the company finds out, you can be denied.
• Drugs or alcohol use: If you die while using drugs or alcohol, your insurance might be denied since you willingly engaged in dangerous behavior.
As long as you avoid these, your claim will probably be paid. It is worth noting: if the person in question’s death was a result of negligence or misconduct of another person or company, you may want to enlist the help of an experienced wrongful death attorney.
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How to Find Life Insurance Policies of Deceased Parents
If your parents or someone else close to you dies but you don’t know if they had a life insurance policy, there are a couple of places you can check.
• Their bank: If they had a policy, they were likely making payments on it, and you can find those payments in their monthly statement.
• Financial advisor or accountant: With detailed information about their financial records, a finance professional would have information about a life insurance policy.
• Employer: If they had a job when they died, they might have signed up for a company life insurance policy.
• Personal files: When you go through the deceased’s paperwork, keep an eye out for any information about life insurance.
Are you asking yourself, “I am the beneficiary of a life insurance policy, but I don’t know where to find information?” First, find their life insurance company. Once you have that information, you can simply call the company.
The company will help you figure out your next steps and identify if you’re a beneficiary or not.
Find Affordable Life Insurance Companies That Pay the Policies Within 10 Days if Death Occurs
When a loved one dies, you want the process of handling everything to go as smoothly as possible. Life insurance companies make this process relatively simple in most cases. While 10 days might be a little too quick to expect a payout, you’ll probably see one in about a month.
If you’re ready to see rates from life insurance companies that pay the policies within 10 days if death occurs, you need to shop around. Enter your ZIP code into our free tool if you’re ready to see what quotes might look like for you.