Life insurance is an essential type of insurance coverage that everyone should have. However, if you are one of the life insurance beneficiaries of a friend or family member’s policy, you should know various vital details.
When the unfortunate day comes that your loved one passes away and it’s time for the insurer to pay out, a life insurance attorney can assist with a few details, such as ensuring you get the maximum payout. However, whether you are making a claim or not, all life insurance beneficiaries should know these crucial details.
You Don’t Need The Policy On Paper To Make A Claim
Paperwork can get misplaced over the years, and while many life insurance beneficiaries believe that they need the paper documentation of the policy to make a claim, this is a common misconception. If you are a beneficiary, you don’t need to produce the paperwork to prove you are entitled to a payout. All you will need to know is the name of the insurance company to start the claim process.
A Copy Of The Death Certificate Is Essential
You will receive a claim form from the life insurance company when you start the claim process; after that, you will need to produce a copy of the death certificate. Once you have the claim form and attached death certificate, you can submit your claim.
You Won’t Be Liable For Tax
After receiving the payout, you won’t be liable to pay any tax on the amount of money received. The benefits are paid tax-free, regardless of how large the amount might be. So, if you receive any phone calls or emails stating that you owe tax on the payout, rest assured that this is likely a scammer taking a chance.
You May Need An Attorney To Get The Full Policy Amount
Claiming from any insurance policy can be stressful as insurers are often reluctant to pay out the policy’s total face amount. Unfortunately, you may need to rely on a specialized lawyer to ensure you get the policy’s entire amount.
So, if you are somewhat concerned that you might not receive the amount promised to you by the insurer, it is best to consult a legal practitioner specializing in this unique area of the law. There are some instances in which life insurance policies will not payout; although this is rare, you should contact an attorney if your claim is rejected.
You Are Not Entitled To Know Other Beneficiaries
Suppose you are not the only beneficiary on the policy. In this case, you aren’t entitled to know who the other beneficiaries are or how much of the policy they will receive. Unfortunately, demanding to see this type of information will be futile with any insurance company. So avoid asking any questions about other beneficiaries when claiming.
Losing a loved one is a genuinely harrowing experience, and while you are still mourning the loss, you may feel overwhelmed with the details of claiming for the life insurance policy. Should you feel that the claim process will be too painful to endure, you should consider relying on a life insurance lawyer to handle the claims process for you, as this is often a more manageable and less stressful solution to receiving the payout.