Making a life insurance claim

Step by step procedures

Making a life insurance claim involves some paperwork. There are a number of basic steps you should follow:

Contact the deceased person's insurance company or broker first (or their employer if it is an employee benefits package) to find out what paperwork is required.
Find out what you are entitled to - you may not always know what sort of life insurance policies a spouse or family member had, particularly if they were members of a group scheme. Review credit card and bank statements and contact lenders and the deceased person's employer to learn about any additional cover he or she may have had.
Get your paperwork in order - you will need the policy documents as well as proof of your right to claim. If you are claiming following the death of the insured person, you will need a copy of the death certificate.

Pay outs

If you arrange a policy on your own life, your life assurance company pays the policy benefit into your estate when they receive proof of your death. If a policy is taken out on your life by your spouse or partner, they can make a claim for the policy benefit without it first going through your estate.

Joint life and dual life policies

In the case of a joint life policy, the benefit is usually paid to the surviving policyholder.

A dual life policy provides cover for two people and continues in force after the first person dies. It pays out a benefit on each death. So if you and your partner take out a dual policy, it will pay out part of the sum when one of you dies and will pay out the remaining sum to your dependents or estate when the second partner dies.

Mortgage protection policies

If you have a mortgage protection policy, it has to be ‘assigned to' your lender. This means that your life insurance company pays the benefit to your lender when you die. Your lender will use the money to clear your mortgage and pay any money left over to your estate.