It is said that a life insurance policy is not for the insured but for his loved ones. A life insurance policy is your loved one’s love and care for you where they secure your future when they aren’t around. Many people feel shy about claiming a life policy, as in the event of grief, it only adds to it.
But it is your loved one’s hard-earned money that you will be getting paid. But how to make a claim is the biggest question. How to claim life insurance?
If your loved one has bought life insurance in Phoenix, AZ, this guide will help you understand how to claim it in their absence.
How To Claim Life Insurance in Phoenix, AZ?
You must follow the below steps to claim life insurance.
Find Out the Insurance Company
Before filing a claim, you must find the name of the company from which your family member purchased the life insurance. If you were aware of the existence of a policy, then you are good to go. If not, then you must search the deceased’s records and documents.
You can find out about the policy in the following ways:
- First, check bank statements and checks.
- Check other financial records, including safety deposit boxes.
- Check income tax records.
- Use Life Insurance Policy Locator Service to find out the policy in case of no knowledge.
Obtain Death Certificate
It is a painful procedure but inevitable. You must obtain a death certificate, policy, or no policy, as it is required for several legal and procedural tasks, such as closing bank accounts and transferring assets.
One must file for a certified copy of the death certificate to the Arizona Department of Health Services. You can apply it in person or by mail. It requires a stamped envelope with your notarized signature, an application requesting the death certificate, proof of eligibility, and an appropriate fee.
It takes 7-10 business days for the death certificate to arrive.
File The Claim with The Life Insurance Company
Once you have the death certificate, it is time to file a claim which also needs an autopsy report, a toxicology report, a coroner’s report, a police report, medical reports, etc. All these reports are required to ensure that the deceased died of natural reasons. In case of a suicide or a murder, the life insurance is delayed and can even be denied if the beneficiary is a suspect.
Heroes Financial Group understands that losing a family member is painful, and we try to help you as much as possible to ease the process of filing a life insurance claim.
How Do You Want to Get Paid?
You can get paid the life insurance payout in the following ways:
Lump sum: As a lump sum is self-explanatory, you receive the entire amount in one go.
Specific Income Option: The insured keeps the money in an interest-bearing account. This account pays off fixed monthly or annual payouts to the beneficiary. The interest, however, is taxable.
Fixed Period Annuity: Annuity refers to a fixed payment. Under this option, the beneficiary can choose a fixed period, e.g., 10 or 15 years. The insurance proceeds are divided by the number of chosen years, and the payments are made. The beneficiary can also choose a survivor who will receive the payments in case something unwanted happens before the chosen period ends.
Lifetime Annuity: Again, it is a regular payment plan, but it continues for a lifetime. The beneficiary’s life expectancy is estimated and based on it monthly payments are calculated. If they pass away before the proceeds have been exhausted, the remaining amount reverts to the insurer company.
In most cases, the beneficiary will choose how the payouts will be made. However, it also depends on the insurance company and the type of policy purchased.
At Heroes Financial Group, you can find the best life insurance policies with the help of our agents.
Payout Time
In case of natural death, an insurance payout is speedy. If you have submitted all the documents with the application, you can receive death benefits in a few business days.
In some cases, the payout might not be processed or denied. The cases are:
- If the policy had lapsed due to non-payment of premiums.
- If the cause of death was a suicide.
- If you are no longer the policyholder. Or you are a legal heir, but you are not a party to the contract.
- If the insured died while committing a crime.
Settle Your Claims Faster with Heroes Financial Group
At Heroes Financial Group, we understand your grief, and thus we offer the best customer service to help with your settlements of insurance payouts through our preferred partner carriers. Purchasing a life insurance policy with the guidance of our experts will never make you regret your choice, as we are the best choice for life insurance in Phoenix, AZ.
