When the policyholder passes away, the beneficiary will need to contact the insurance company to file a death claim and go through the claims process. In most cases, the beneficiary will need copies of the policyholder’s death certificate and other required paperwork, which the insurance company provides. Lastly, the beneficiary will specify how he or she wants to receive the funds. Insurance companies pay a lump sum or in installments.
Once the claim is submitted, the insurance company may take up to 30 days to accept or reject the claim. Insurance companies usually pay the benefit within two weeks after the claim is accepted.
