The death of a loved one is always a difficult experience. This is especially true when financial hardship is experienced as a result of their death. Fortunately, life insurance claims can help prevent this from happening, provide financial support, and relieve some stress.
If you are the beneficiary of a deceased loved ones’ life insurance policy, you may be wondering how to file a claim. Read on to learn about the steps you need to follow to seek life insurance benefits. You should also contact a Chicago life insurance claims attorney if you have additional questions or believe your claim was wrongfully denied.
The first step to filing a life insurance claim is to gather up all the necessary documentation. This is important because having your paperwork organized can expedite the process so you can begin getting payments. To file a claim, a beneficiary must submit the following three documents:
After gathering up your documents, the next step is to get in touch with the insurance company that issued the policy to notify them of the policyholder’s death. If you’re prepared, it’s much more likely that the process will go smoothly.
Under Illinois law, insurers must pay benefit benefits within 30 days. Depending on how long it takes for a claim to be processed, insurance companies may pay out benefits within a few days. If it takes the insurer longer than 30 days to process the claim, the insurer is required to pay interest on the unpaid proceeds.
As a beneficiary, there are several different ways you can choose to receive death benefits. The two most common options are lump sums or annuities.
A lump-sum payment means you’ll receive the entire benefit at once. This is helpful because you can use it as a way to pay for expenses like funerals or mortgages. Lump-sum payments are also not taxable.
An annuity is a financial instrument where the death benefit is invested and paid back to you as an annual payment for a predetermined amount of time.
While grieving the loss of a loved one is never easy, filing a life insurance claim can help alleviate some of the associated financial burdens. If your claim was denied, you should contact a lawyer right away. Please contact us for more information today.