How Do You Go About Collecting On Life Insurance?

By: Lynn Huggins

The death of a family member is a traumatic time and in the middle of all of the upset it is necessary for those closest to the deceased to have the presence of mind to complete many tasks they are unfamiliar with. After funeral arrangements, notifying friends, family and co-workers of the deceased, and consoling loved ones, the person's affairs have to be wrapped up. In addition to dealing with loans, bills, bank accounts, investments and personal possessions the question arrises as to what to do about collecting on any life insurance.

If the beneficiary is in possession of the policy it is a simple matter of contacting the insurance company, letting them know about the death, providing the company with a death certificate and any forms the company needs to process the payment. Within a few days or at most a few weeks the claim will be processed and payment made. Generally the only delay is if the company suspects some sort of fraud or foul play due to either the size of the policy or the circumstances of the death.

If the policy has to be found, the first place to start is wherever the insured person kept valuable documents, such as loan papers, a safe or safety deposit box, under the bed, or in an office desk or file cabinet. If you can discover who insured the house or car, that same agent or company can be checked with to see if they also covered the person's life. Look for cancelled checks for insurance premium payments. And check the mail for incoming notices about missed premium payments.

Finally, there are companies that can be contracted with that specialize in tracking down life insurance policies on deceased individuals. Search the internet for "Lost Life Insurance Policy" or "Life Insurance Policy Finder."

Article Source: http://yourfinance.co.za