If you are the named beneficiary on a life insurance policy, the death benefit is yours — it does not go through probate, and you do not need a lawyer to claim it. But you do need to file. Insurance companies do not pay out automatically, and the money will sit in their account until someone asks for it.
Here is the process, start to finish, in plain language.
Step 1: Find the policy
You need the policy number, the insurer, and the face amount. Look in the filing cabinet, the email archive, the safe deposit box, and old bank statements for premium auto-pays. Check the employer too — many people have a group life policy through work that the family does not know about.
If you suspect a policy exists but cannot find it, the NAIC Life Insurance Policy Locator is a free national search run by state insurance regulators. You submit one request and it pings participating insurers. Responses come within 90 days.
Step 2: Order certified death certificates
The funeral home usually orders these for you. Most insurers will accept a single certified copy — not a photocopy — so order at least one per policy, plus a few extras for banks, brokerages, and Social Security. Cost is typically $10 to $25 per copy depending on the state.
Step 3: Call the insurer and request a claim packet
Call the number on the policy or the company's main claims line. Tell them the insured has died and you are a named beneficiary. They will mail or email you a claim packet, usually within a few business days. Ask them to confirm what proof of death they accept, where to send the paperwork, and whether they offer interest-bearing accounts as a payout option (more on that below).
Step 4: Complete the claim forms
You will fill out a claimant statement that asks for your relationship to the insured, your contact information, your Social Security number, and how you want to receive the payout. If there are multiple beneficiaries, each one usually files separately for their share. Sign exactly as your name appears on the policy.
Step 5: Choose how you want to be paid
Most policies offer two or three options: a lump-sum check, direct deposit, or a "retained asset account" the insurer holds for you that earns interest and lets you write checks against it. Lump sum is the simplest and most common. Retained asset accounts can be useful for a few weeks while you decide what to do with the money, but the interest rate is usually lower than a high-yield savings account.
Step 6: Submit and wait
Send everything together: the claim form, a certified death certificate, and any extra documents the insurer requested (a copy of the policy if you have it, or beneficiary ID). Send it by tracked mail or the insurer's secure upload portal. Keep copies of everything.
Most claims are paid within 30 to 60 days. Federal and state laws generally require insurers to pay valid claims promptly — many states add interest to any payment delayed beyond a set window. If the policy was less than two years old, the insurer may take longer to review for "contestability" (typically suicide or material misrepresentation on the application). That review can add weeks, but a clean file still gets paid.
What slows a claim down
- Missing or outdated beneficiary — if the named beneficiary is deceased or the form was never updated, the payout may go to a contingent beneficiary or the estate.
- Cause of death pending — if the death certificate lists cause of death as "pending," the insurer may wait for the final ruling.
- A policy still in its first two years — contestability review takes longer.
- Paperwork mismatches — a name change after marriage or divorce that was never updated on the policy.
If any of these apply, send a short cover letter with the claim explaining the situation. Clear context up front saves weeks of back-and-forth.
The Life Insurance Claim Cover Letter walks through exactly what to include when you file — policy details, beneficiary information, requested payout method, and contact preferences. It is in the Estate bundle at lumeway.co.
The money is yours. The paperwork is the only thing standing between you and it.
This post is for general informational purposes only and does not constitute legal, tax, or financial advice. Life insurance claim procedures, payout timelines, contestability rules, and tax treatment of death benefits vary by insurer, policy type, and state. For guidance specific to your situation, consult the insurer directly and, where appropriate, a licensed attorney or financial advisor.