What To Expect When Claiming a Life Insurance Benefit

Almost all of us will eventually need to go through this not really a pleasant experience, but being a beneficiary of an insurance policy that is eligible to collect is just something that suddenly happens and we can't do anything with it. So what do we do know in this not so pleasant situation?

First of all it is very wise to try to obtain all the policies connected to the insured relative. Although this action isn't truly necessary and you don't really need a copy of the policy when collecting the life insurance claim, it is beneficial because the policy will highlight the total death benefit and also show us any potential exclusion. Our insured relative could have more multiple policies with various insurance carries, for example a mortgage policy, group life policy or any other kind of creditor life insurance policy.

The next step you should take is to contact your insurance broker and/or your insurance company in order to inform them about the insured's departure, or else they will not begin processing your claim. Recent estimates show that in Canada every year millions of life insurance benefit dollar go unclaimed and therefore unpaid. This is mainly because the fact the insurance broker or companies were never notified about departure of the insured persons. The great advantage of buying a policy from an insurance broker and not directly from an insurance company is that the broker can aid you when going through the whole claim process and you are able to finish it successfully without any major problems.

The third very important step to do is to get all the required documents together, because the insurance company (or you broker) will need an original (also a certified copy is acceptable) of the death certificate. You as the beneficiary will need to prepare your passport, driver's license, birth certificate or any other credibly form of identification and then fill out the claimant's form. In some cases, when you are dealing with bigger policies or policies bought not more than two years before the insured's death, the insurance company will maybe write the insured's doctor to verify their information about the insured's health at the time of application. Plans valued at $25.000 and less usually qualify for an express payment and the beneficiary can get them within five business days.

A Toronto life insurance expert Chantal Marr also advises to keep a copy and record everything you send to the insurance company or forward through your agent.