How Does Life Insurance Policy Work When Someone Passes?

When someone we love passes away, it can be difficult to think about the practicalities of dealing with the aftermath. However, there is a financial aspect to consider, and life insurance is one way to help ensure your loved one’s family is taken care of. This article will discuss how life insurance works when someone passes away and the steps you should take to ensure the process is taken care of.

How Long After Someone Dies Can You Claim a Life Insurance?

When someone passes away, their life insurance policy is still valid and can be claimed by the designated beneficiary. The amount of time you have to file a claim depends on the type of life insurance policy you have and the insurer you’re working with. Generally speaking, you should file a claim as soon as possible after the death of the insured.

Most life insurers have a specific time frame in which you can file a claim. This is typically within 30 days of the death of the insured person. If the claim is not filed within this time frame, the life insurance policy may become invalid. Your life insurance policy should have a specific time frame listed, so make sure to check the policy before filing a claim.

What Happens to the Life Insurance Policy If I’m Not a Named Beneficiary?

If you are not a named beneficiary on a life insurance policy, then you will not be able to make a claim for the benefits. The life insurance policy will be paid out to the designated beneficiary, which is usually the spouse or children of the insured person. If the beneficiary passes away before the policyholder, the policy will be paid out to the estate of the deceased.

It is important to keep your life insurance policy up to date by adding or removing beneficiaries as needed. This will ensure that the policy is paid out to the intended person or persons. If you are not a named beneficiary, you may still be able to contest the policy and make a claim for the benefits. This will require you to prove that you were financially dependent on the insured and had a reasonable expectation of receiving the policy benefits.

What Can Be the Reason for the Rejection of a Death Claim?

Unfortunately, life insurers can and do reject death claims. This can be due to a variety of reasons, such as fraud or misrepresentation on the part of the insured or the beneficiary. The insurer can also reject a death claim if the insured failed to disclose material information about their health or lifestyle, or if the policy was obtained through fraud or misrepresentation.

The insurer may also reject a claim if the beneficiary fails to provide sufficient evidence of the death. This may include a death certificate, a letter from the insured stating their wishes, and proof of identity.

In some cases, the insurer may deny a claim if the policyholder was not truthful about their age or other material information. It is important to make sure all information is accurate when taking out a life insurance policy.

Cover Your Loved Ones in Your Absence with Life Insurance at Premier Risk

If you are looking to make sure that your family is taken care of in the future, consider looking into life insurance coverage. Premier Risk can help you find the right policy for your needs and help you understand the process of filing a claim. Contact us today to get started.

Contact Us

  • What type of Insurance are you interested in?