When you decide to take out life insurance, it is done to financially cover your family or loved ones. That is why when choosing the policy to contract, it must be clear how long it takes to collect the life insurance and what is the procedure to follow.
When a death occurs in the family , there are many things that we are forced to pay attention to, but that do not end up being as important as the loss of the loved one. We close in on our pain and forget that there are aspects of the dying process that require our attention. This is how irremediably we conclude that it is necessary to take care of the funeral expenses if these had not been covered by funeral insurance.
What is the average time for insurers to make a life insurance payment?
The average time to make a life insurance payment is 30 to 60 days after the death of the insured . However, this can vary depending on the state where we are, the insurer and the way in which the insured died. In some cases if all the papers are in order, the money can be delivered during the first 10 days.
It is important that although we have not yet overcome the pain of loss and perhaps while we are still going through the main phases of grief, we can dedicate some of our attention to putting in order the life insurance that the deceased person had. This demonstrates much of the difference between working directly with an insurer and relying on a brokerage to provide us with all their support in the process.
The brokerage will make every effort to ensure that the life insurance is collected within the terms stipulated by law . In addition, he will provide us with all his support in these difficult times and will facilitate some tasks that we cannot turn our backs on. They are a breath of fresh air and warm support at a time when suffering grips our hearts.
Once all the information of the deceased is delivered, such as the corresponding certificate confirming the death, or some special document if specific conditions have occurred, the payment process will begin by the insurer. This will take care of making the payment within a maximum period of 40 days, a time that can be reduced or reached its limit depending on the usual procedures of the insurers with whom we work.
It is important to remain calm during this time as we wait for the insurer to make a payment on the life insurance of the deceased person. There are cases in which these payments are made in a few days, while other times the time can exceed a month. After all, the margin of 40 days is generous enough for insurers to take it easy to make the payment of the policies that the deceased had contracted.
Once the steps have been taken to receive the amount specified in the life insurance, families have to take into account that they will have to face a series of payments in the form of taxes, something that will not be traumatic and that will not prevent them from enjoying the policy. Families regularly use the amounts of life insurance as support to face the organization of funerals , but also as support regarding how they are restructured taking into account the economic gaps left by the deceased person .
There are occasions in which the same person may have different life insurance contracts, in the same insurer or even in several, with one or more brokerages that have dealt with its management. It is important to bear in mind that although there are several life insurance policies taken out by the same insurer, these must be interpreted as independent contracts and not be paid jointly. The amounts may be received by the families at different times depending on many additional factors, especially if there is some type of document to review in one or more of the life insurances that are trying to collect.
In all these procedures, which can sometimes be a little more complex and complicated to understand than usual, the work carried out by insurance brokers plays a decisive role. These have in their ranks professionals who have been trained to respond to the needs of customers and whose experience has been accumulated case after case to know how to react at all times. It is one of those advantages that helps to have the guarantee that the life insurance will be collected with the shortest possible waiting time.
In the event of any irregularity or a delay greater than the average in the collection of the life insurance, the people who have turned out to be the beneficiaries of the insurance should not hesitate to contact the brokerage or insurer. It is recommended to request information and claim the amount due before the case begins to be forgotten due to the passage of time. The sooner we have a solution to the life insurance pending collection, the sooner you can breathe easy knowing that the deceased person has left her family in good hands.
How long does it take to collect life insurance?
When you have finished with all the procedures required by law and by the insurance company itself, then you will have to wait about 3 months to collect the life insurance . The Insurance Contract Law establishes that the term cannot be longer and that the insurer is obliged to pay compensation at the end of the relevant investigations and appraisals to confirm the existence of a claim and define the amount for the damages that result from it.
The Law that regulates the relationship between the insured and the insurer establishes that the 3 months will begin to count from the receipt of the claim declaration and that after this time the insured can claim both compensation and interest generated by delay. And that’s not all: the insurer could be sanctioned by the General Directorate of Insurance and Pension Funds.
What to do if you are not sure that the deceased was the holder of life insurance?
When it is unknown whether the deceased was the holder of life insurance, it is necessary to verify it through the Registry of Insurance Contracts and Death Coverage , a public registry where insurance that incorporates death coverage is collected, either for any cause ( life policies) or by accident (accident policy).
