When someone passes away, if they have taken out a life insurance policy it will be time for the life insurer to pay out to the beneficiaries. The question is, how long will the life insurance company take to pay out?
If all goes well, it should be immediately, usually about two weeks after the death of the deceased. When the deceased passes away, the life insurance company will usually do an investigation into the cause of death. This is important in relation to the clauses of the life policy. We have many more Life Insurance Help Articles Now Available.
If the insured was only covered for accidental death, and died of a non accidental cause, then they will be within right to not pay out. This is what the investigation is all about. The insurance company will also look into whether the death could have been a suicide and whether it was a suicide that was planned to look like one. If this is the case, many insurance companies will not pay out, as they usually have a suicide clause in the policy. Normally, if the policy has been in effect for less than two years, they will not pay out for a suicide death. Thereafter there may be limits to the coverage if the death was a suicide.
It is important, as a beneficiary, to ensure that you are aware of the clauses in the life insurance policy of the deceased who named you as a beneficiary. The life insurance company is usually, by law, not allowed to take more than 30 days for the investigation, but if they come across any problems, they are allowed to extend that time period by another 30 days. If there are any hiccups in the insurance claim, such as people disputing the policy, there could be a delay. Sometimes there are family disputes regarding the payout of the policy and this can delay the payout for a much longer time than anticipated.
It is important for you, as a life insurance policy holder, to ensure that all your angles are covered so that there are no loopholes in the policy payout process. Ensure that you have written up a Last Will and Testament clearly stating what you would like done with your life insurance policies when you have passed away, so that there are not any problems when you are gone. If you can, ensure that you are covered for both accidental and disease related deaths, so that you will be covered no matter how you pass away.
Although it may seem a morbid thing to have to face, you need to tackle your life insurance policy properly to ensure there are no loopholes that are missing. If you have been paying towards it every month you will undoubtedly want it to work out smoothly when you have passed away. We have many more Life Insurance Help Articles Now Available.