How to Help Clients with Filing a Death Benefit Claim

As an insurance professional, certainly, your top goal is ensuring that clients are properly protected with life insurance coverage. So, when the time comes to file for benefits, how can you best help your clients?

One of the first items of business is to assist them with filing the death benefit claim, as well as walking them through what they can expect going forward.

What Information is Needed for Filing a Life Insurance Claim?

Before actually filing a death claim, there is some information that should be gathered, as it will be needed by the insurance company. For example, there is typically a specific claim form that must be filled out. This should be obtained by the insurance company (or companies, if the insured had more than one policy). Today, many insurance companies offer downloadable claim forms directly on their websites.

In addition, the insurance company will also want to see a copy of the insured’s death certificate. It is recommended that the insured’s survivors order several copies of the original death certificate, as this document will also be required from banks, financial institutions, and other entities where the insured had accounts.

The policy beneficiary (or beneficiaries) will also need to determine how they wish to receive the proceeds from the life insurance policy. There are actually several different options that they can choose from, such as:

  • Lump Sum. The lump sum option is the one that is oftentimes chosen. This is particularly the case if there are large debts that need to be paid, such as the cost of the funeral, uninsured medical costs, and/or loan balances. If the insured purchased the life insurance with the intent of his or her survivors paying off their home mortgage, the lump sum option will allow them to do so.
  • Life Income. If the beneficiary instead opts for the life income option, he or she will receive a certain amount of income for the remainder of their lifetime. This option is usually chosen if the survivor(s) needs to replace income for paying their everyday living expenses.
  • Specific Income. There are times when the specific income option may be the best alternative. Here, the beneficiary will receive a stream income for a certain period of time. This income will consist of both principal and interest from the life insurance policy’s death benefit.
  • Interest Income. With the interest income option, the life insurance company will retain the proceeds of the death benefit. Interest income will then be paid to the policy’s beneficiary. At the beneficiary’s passing, the lump sum will then be paid to a recipient of his or her choice.


When to Expect the Policy Proceeds

Because many people intend to use the proceeds from a life insurance policy for the payment of a loved one’s funeral and other final expenses, knowing when to expect these funds can be a big concern.

The good news is that, in most cases, the proceeds will be paid out within just 10 to 14 days – and in some instances, even sooner – provided that the insurance company has received all of the necessary information and paperwork.


How to Help More Clients Benefit from Life Insurance

With so many ways that life insurance proceeds can ease financial concerns, this tool should be a part of most any good, solid financial plan. If you would like to have a long list of potential life insurance prospects, and in turn, earn thousands of dollars more each month in commissions, we can help.

For more details on how you can ensure a steady stream of life insurance leads, just contact us at 1-800-643-6143 for more details on how to get started.

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Brian J. Kay, Executive Director, Leads4Insurance
921 Port Washington Blvd., Suite # 3 Port Washington, NY 11050
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