Life Insurance Claims FAQ

 

When you’re ready to make a claim, we understand you may have many questions. This list covers the questions we hear most often.  

1.      How long does it take to get life insurance money?

Once you submit all the paperwork, it may take less than a week to receive a life insurance payout. But you should receive the money within 30 days, assuming everything is in order.

2.      When I make a claim do I get the cash value from a policy?

Cash value life insurance policies contain an account that builds up over time, but the cash value generally reverts back to the life insurance company when the insured person passes away. The beneficiary will generally receive the face value of the policy, minus any outstanding loans and withdrawals that the policyholder made.

It’s sometimes possible to buy a policy that pays out the cash value plus face value, but the policyholder would have had to choose that option at the time of purchase.

3.     How do I know if a term life insurance policy has expired?

If you’re the beneficiary of a term life insurance policy, you’ll want to initiate a claim to see if the policy was still in-force. Even if you have the policy paperwork and it looks like it expired, it’s possible that the policyholder renewed it past the original expiration date.

4.      What documents must I mail with my life insurance claim?

Here's what you need:

·     Completed claim form signed by each beneficiary (this form will be included in the claim packet we send you)

·       An original, certified copy of the death certificate

·       Copy of the life insurance policy (if available)

·       Other applicable court documents

Please not that you may not email or fax your claim form and documentation, as we need original copies of the death certificate and additional required documents (when requested).

5.     How long will my life insurance claim take?

Most claims process within 7-10 business days after receiving your completed claim form and related documents. Beneficiaries usually receive payment shortly thereafter. Some claims may take longer.

6.     How can I find out if my loved one had other life insurance policies?

View Ways to Locate an Unclaimed Life Insurance Policy to help you get started.

7.     Can life insurance benefits be paid directly to the funeral home?

Yes. The beneficiary and the funeral home are required to have a signed contract. A copy of this contract (or "assignment") must also be sent to Allstate®.

8.      What happens if the beneficiary is a minor child and no guardian is named?

The appointed guardian needs to submit guardianship documentation along with the claim form and certified death certificate.

If no guardian is named, the Uniform Transfers to Minors Act may permit disbursement of funds to a custodian for the use and benefit of the minor child. The appropriate family member may wish to consult an attorney for advice.

 

 

 

 

 

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