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What happens if the insured person dies?
Once proof of the death is submitted to the insurance company, and it is clear that the necessary premiums to keep the policy "in force" were paid to the date of death, the life insurance company should promptly pay the benefits, assuming that everything is in order and the policy has been in effect for at least two years. (Once the policy is at least two years old it is beyond the "incontestable period" and must be paid, except in extraordinary circumstances.)
Even if premiums on the policy were not currently being paid, the policy may have been in a "paid up" status, and thus remained in force, or the company may have failed to send the necessary notices of cancellation, or be able to prove it had sent such notices, in which case it may be possible to recover on the policy.
Typically the beneficiary -- the person who is entitled to receive the benefits -- provides the insurance company with the "proof" of the death required by the policy. A certified copy of the death certificate (typically with a "raised seal" from the County Clerk's Office) and the life insurer's claim form are normally sufficient, but it is necessary to file them; just because the company may have been able to read about the death in the papers, or also was the health insurer, is not sufficient.
Processing a policy death claim should take only one to four weeks from the time the insurer's claims office has all the needed paperwork in the standard case, if it does not, you may have a problem case (see below) or an insurer acting in bad faith. |
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