Finding out that you’re someone’s life insurance beneficiary can be a little overwhelming. You may not know why they specifically chose you, but it is clear that they wanted to provide for you even after they were gone.
When your loved one dies, as their beneficiary, there are a few things you need to do. Not only do you have to deal with your own emotions, but you are responsible for making their life insurance claim. The money you will receive from this life insurance claim can be used towards medical bills, funeral costs, and other personal fees that your loved one had. If there are any funds left over, they can be used to help secure your financial future.
If you are someone’s life insurance beneficiary and don’t know what to do next, or if you’re unsure of what to do throughout the whole life insurance claim process, here are a few tips.
Where Do I Go From Here?
First, you need to find their life insurance policy. If you don’t know anything about their policy, try looking around for any information in their home. If you can find any information at all, even regarding their agent, that’s a good place to start. If you find the information regarding their agent, you can reach out to them directly and ask them to point you in the right direction.
Once you have the information telling you which company your loved one used, contact them for the specific next steps required for the policy in question. After getting in contact with the company, one of their representatives will lead you in the right direction and tell you where to go from there. You will need to provide the insurance company with a birth certificate and a completed insurance form. There may be additional requirements to process the claim, but the company should guide you through this process step by step.
The company will then ask you how you want to receive the payment from the death benefit. Typically, the money is paid in a lump sum. However, you may be able to choose to accept the payment in increments. This choice may be better in some cases, as receiving a large amount of money all at once can be extremely overwhelming. However, it just depends on your current financial needs. Don’t be afraid to ask your financial advisors, family, or insurance agent about which option is the best choice for you. After you decide, all you need to do is wait for the payment to arrive.
In 2015, 55% of Americans said they would recommend life insurance to friends and family. In 2016, that percentage rose to 66% of people offering such a recommendation. In an uncertain world with a frightening future, more people want to be able to help their family and friends after they pass away. Funerals are incredibly expensive, but more than that, life insurance can help your loved ones keep their heads above water for years after your passing.
Even so, being someone’s beneficiary can be extremely nerve-racking in the moment. However, by following the above steps and by taking each problem one at a time, the process will seem a little less overwhelming.