About How Long Should It Take to Receive Life Insurance Money?


When a loved one passes away, the family is hit with financial expenses that can seem insurmountable. Life insurance is there to provide the financial resources to help the family take care of immediate and long-term problems that can arise when someone passes away. The speed at which a life insurance company pays out a death benefit depends on several factors that families should be aware of.

Filing The Paperwork

When a loved one passes away, there is paperwork that will need to be submitted to the insurance company to get the death benefit released. Basic information most insurance companies require include the death certificate, the social security number of the deceased and a copy of the deceased’s driver’s license. The beneficiary will need to make copies of their driver’s license and social security card to submit to the insurance company.

Under Normal Circumstances

Under normal circumstances, an insurance company will pay out a death benefit within two to 14 days after the paperwork is submitted. The ideal conditions include the life insurance policy being in effect for three years or more, the cause of death are not suspicious and the insurance policy has all premiums paid.

When Problems Arise

The payout of a death benefit can be delayed when the insurance company feels that it needs to investigate the circumstances of the payout. One knock against the beneficiary could be if the life insurance policy has been in effect less than three years. In most cases, this is a financial decision for the company to make.

A suspicious death such as a suicide or a death due to a pre-existing condition that the insured did not disclose to the company will cause problems when it comes to a payout.

The Company Itself

Before you buy a life insurance policy from an insurance company, you should research the company to find its reputation for paying out death benefits. Some companies tend to pay faster than others, and that should be a consideration when you are trying to decide which company to go with.

The Payout

Most families rely on the death benefit of a life insurance policy to pay for the funeral services and help the remaining family members to pay off debts and keep the family home. The longer it takes for the company to pay the death benefit, the deeper into debt the family could go.

A death benefit from an insurance policy is designed to remove the financial burden of final arrangements for the surviving family members. The speed that the insurance company pays the death benefit depends on several factors, which can sometimes depend on how quickly the family sends in the information the company needs.