What problems might we run into when filing a death claim?
The follow types of cases raise problems that typically cause life insurers to delay payments while making an investigation.
(1) there are real questions about whether the policy was currently "in force" as of the date of death, or
(2) the policy is less than two years old, or
(3) the death is the result of suspicious circumstances (suggesting that a beneficiary may have been involved in the death) or
(4) the result of an accident, to the extent the policy paid accidental death benefits (such as "double indemnity" or the face amount plus and amount equal to the face amount), or
(5) the death certificate indicates the insured is older than s/he said when applying for the policy, or, in some states
(6) was a smoker who claimed s/he did not smoke when applying for the policy, or
(7) circumstances suggest that the deceased is not the person whom the insurance company was intending to insure (such as if an imposter pretended to be the insured, signed the application and took the exam in the name of the person who died).
Under the laws of most states, even if yours is a "problem case", you would be paid "delayed settlement interest" from either the date of death, or shortly thereafter, if and to the extent it is eventually determined that you are entitled to the proceeds.
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