Perhaps the furthest thing from your mind when a loved one passes away is dealing with a life insurance claim. Many Canadians are unsure what about what to do when they find themselves in this difficult situation. It can be extremely overwhelming planning a funeral, dealing with lawyers, family matters and many other things, but processing the insurance claim is something that needs to be done soon to avoid potential complications. The following steps are to help guide you through processing the claim as smoothly and quickly as possible.
Step 1: Find the Policy
This is the legal contract that contains the terms and a condition of how much the insurer is required to pay in death benefit proceeds.
Step 2: Call the Insurance Broker/Agent or the Insurance Company
You need inform them or your situation and ask them for assistance for making a claim. The insurance company will then send you and/or the advisor the necessary paperwork, which will summarize the information the company will need to process the claim. Then your advisor can help you do this with sensitivity and care.
Step 3: Gather Supporting Documentation
The information that you will need to supply are…
– An original, or certified copy of the death certificate
– A way to prove you are the named beneficiary (Passport, Driver’s License, ect…).
Step 4: Send in the Information
The completed paperwork and the supporting documents are sent to the insurance company. It’s very important to retain a copy of everything for your records. If you’re using an advisor, then he/she will know exactly what to do and where to send the documents so you can leave it with them. Your advisor will use a courier or other method of delivery that can be tracked. If you’re doing this on your own, then you need to do the same.
Step 5: Receiving the Benefit Proceeds
Once the insurance company processes it you will receive your benefits. Normally, insurance companies are quick to process these claims (within 30 days) and you can expect to receive your benefit provided there aren’t any complications. The most common reason that a settlement is delayed is because the copy of death certificate is invalid, so double check to ensure that you have everything you need before sending it in.
Using your advisor is definitely recommended because they are able to act on your behalf and provide you with status updates as the claim goes through the insurance company’s process. Then they can deliver the cheque to you in a timely manner once things are settled. This is why choosing your advisor carefully when purchasing insurance is so important, because they will be dealing with your family thought devastating circumstances and much care and consideration should be taken.
Get some help without the hassle at 1-877-755-9293 (you can also connect with us HERE)