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How To Process A Death Claim For Your Clients
Below are some steps that Bell & Associates feel may help you in processing a death claim should you face this as an agent:
- Discuss the following with the spouse or family member that notified you of the death:
♦ Date of death
♦ Name and current phone and mailing address of the spouse or beneficiary willing to assist in the claims process
♦ If the policy is owned by a Trust/ILIT you will need the complete name of the Trust including when it was dated and the tax identification number (TIN).
- Contact the Policy Service / Claims department of the insurance carrier involved or Bell & Associates for assistance. You will need to confirm the following:
♦ Deceased insured’s full name as it appears on the policy
♦ Policy number
♦ Date of death
♦ If the policy is owned by a Trust: TIN number and name, address, phone number of the designated Trustee
- The insurance company will then send the beneficiary, trustee, or you as the Servicing Agent the claims package to formally submit the death claim to them.
A claims package may include an explanation letter/outline of the claims process of that particular carrier, a list of requirements needed to process the claim, and other instructions and paperwork that will need to be completed relating to the claim.
Claims forms and requirements will likely include a request for Certified Death Certificate (original required – no photocopies), Letter of Testamentary (establishes who will act as executor over estate/trust), and a Beneficiary Statement explaining settlement and payout options available. Typically there are two or three ways the beneficiaries can be paid:
1. Lump sum: check for the full death benefit proceeds
2. Annuitized Death Benefit: paid out over a designated period of time
3. “Checkbook Access” or funds-on-deposit: unused funds may gain limited interest. Beneficiary is given an actual checkbook through which they may transfer funds and pay bills from the account.
Once the insurance company has all of the necessary forms returned including the certified death certificate, it will typically take about 10 business days to pay the death claim. In situations that involve a death within 2 years of policy being issued, it is common to have the carrier perform an investigation and additional due diligence to ensure there was no misrepresentation or fraud committed. Bell & Associates' dedicated service team is here to assist you through this process should it occur.
New York Life Insurance company has also established a website to help families who have recently lost a loved one. There are articles and personal stories as well as a plethora of resources in order to help your clients deal with this difficult time. To access this website, please click below:
New Your Life - Grief Counseling Website
If you have any further questions please contact Bell & Associates at 800-308-2355.