When a loved one dies, relatives quickly have to get the financial responsibilities in order. That includes the filing of life insurance claims.
While it is not something grieving family members want to think about, it is essential to plan early.
The first thing to do when filing a claim is to contact either the agent or the insurance company and let them know a loved one has passed. Then you need to start gathering the documentation, such as a death certificate.
Besides a death certificate, you will also need a copy of the policy. Sometimes, relatives may have numerous policies.
If all is in order, you could receive payment within two weeks, and the money is often needed. Typically, life insurance proceeds can be used for anything. Most of the time people use them to pay off funeral expenses, mortgages, and any type of debt or taxes.
It is a good idea to review life insurance policies periodically to make sure that the policies provide the kind of protection needed at one s current stage of life.
Remember to update beneficiary designations. Make sure ex-business partners and ex-spouses are not still unintentionally listed.
The key to life insurance -- prepare now so complications will not add to grief later.