Understanding the Claim Process

In this article, we will guide you through the steps involved in filing a Pre-need insurance claim and provide tips to ensure a smooth claim process.

Understanding the Basics of Pre-Need Life Insurance Claims

Life insurance is a contract between an individual (Owner) and an insurance company for the benefit of the Insured. In the event of the Insured’s death, the insurance company pays out a death benefit to the designated beneficiary. Pre-need life insurance usually designates or assigns a funeral home to be paid for all funeral expenses, with any remainder death benefit is paid to the listed beneficiary.

Key Terms to Know When Filing Claim

Familiarizing yourself with these terms will enable you to navigate the claim process with confidence.

• Owner: The person who owns the life insurance policy. The Owner is responsible for paying the premiums and ensuring the policy remains in force.
• Insured: The person who is insured by the policy and/or the person whose funeral expenses will be paid by the policy. On the claim form, this is also the Decedent.
• Beneficiary: The person or entity designated to receive the death benefit. With Pre-Need Insurance, the funeral home usually receives an assignment of the proceeds of the policy to cover the cost of the funeral.
• Death Benefit: The amount of money payable to the Beneficiary upon the Insured’s death. The death benefit is determined by the Insured when purchasing the policy and can be used to cover funeral expenses.
• Policy Number: The unique identification number assigned to each life insurance policy.
• Claim Form: The document that must be completed to initiate a claim.
• Assignment:  The Beneficiary of a Pre-Need insurance policy may assign the death benefit to be paid to a funeral home up to the amount of goods and services provided.Bottom of Form

How do I file a Pre-Need insurance claim?

1. Contact the insurance company by calling their customer service or claims department.  You will need the policy number, Decedent’s Date of Birth, Date of Death, and last 4 of Social Security Number.

2. Gather required documents: Prepare the necessary documents, including the Insured’s death       certificate, policy details, funeral home bill, and any other relevant information. Make sure to completely fill out the claim form.

3. Submit the claim: Send the completed claim form and supporting documents to the designated address, fax or email provided by the company.

4. Follow up: Stay in touch with the company to ensure the claim is being processed and to address any additional requirements or inquiries.

What happens after I file the claim?

After you file a claim, the company will review it. They may contact you for any additional information or clarification if needed. Once the claim is approved, the company will process the payout according to the terms and conditions of the policy.

Timeline for Claim Processing

Once you have filed a life insurance claim, it is natural to wonder how long it will take for the claim to be processed and the death benefit to be paid out. If all the paperwork received is in order, the claim is usually paid within a couple of days.

Understanding the Reasons for a Claim Delay or Denial

Common reasons for claim denial include when the policy has certain exclusions such as suicide; non-payment of premiums, the policy has lapsed, and misrepresentation or fraud.