How to Claim Life Insurance Proceedings
Cheap term life insurance policies can sometimes have a big face value. If the insured was healthy when he/she bought coverage, the premiums can be as low as $10. Temporary coverage means however, that the policy will expire.
If the insured dies during the policy’s availability, the beneficiaries are entitled to the full death benefit guaranteed by the agency. If you ever find yourself in such a position, it is important to know how to file a life insurance claim. First, we will answer some common questions:
- How soon should I file a claim?
You should file a life insurance claim as soon as the insured has passed away.
- How much does it take for a claim to be processed?
A claim can take several weeks to be processed. It depends on the circumstances in which the insured passes away. If it takes the agency a long time to process your claim, you should ask for an explanation or consider legal actions.
- Is the death benefit taxable?
No. You do not have to pay any taxes for receiving insurance proceedings.
How to file a life insurance claim
Filing a claim should be relatively easy. First, you will have to find the insurance policy. If you cannot find the policy, you can call the American Council of Life Insurance. Read the policy as you can find many important information, including the amount of the benefit it provides. Next, you have to call the agency and the representative will inform you that you will receive some forms. When the forms arrive, complete the paperwork and mail it back to the agency. After that you will just have to wait for the confirmation and the money.
Remember that you can decide the payment modality. You can receive the money cash, or you can ask the agency to deposit the amount in your bank account. Remember that in order to be able to claim proceedings, you have to be named as a beneficiary.
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