How to claim life insurance

Key takeaways

• To claim life insurance you’ll need the deceased’s name, policy number, cause of death, and your relationship to the deceased

• Only beneficiaries are entitled to the payout, if no beneficiary is specified on the policy a court may appoint one

• Claims are prioritised and often settled within a month if documentation is complete

• For joint policies, payouts go to the surviving partner or nominated beneficiaries if both partners pass away

How to begin a life insurance claim

When you are ready to claim, the first step is to contact the life insurance provider. You should find the relevant details in the deceased’s life insurance documents. Most insurers now allow you to start the claims process through their website.

This initial step is crucial, and while it might seem daunting, remember that providing thorough information can significantly smooth the process.

According to the Association of British Insurers (ABI), the vast majority of claims—approximately 98%—are paid out, which should offer some reassurance.

How to find the insurer

Insurance companies can undergo changes, and if you find that the insurer has changed its name or merged since the policy was taken out. You may be able to find an annual statement from the life insurer, or details of the premium payments made by the policy holder.

If you’re still not having any luck, the Policy Detective website could help find them. This resource can be invaluable in tracing the current company responsible for the policy, ensuring that you can proceed with your claim without unnecessary delays.

What details do you need for a claim?

When making a claim, you'll need to provide specific details, including the following:

• The deceased's name, address and policy number

• The cause of death as stated on the death certificate

• Your name and contact details, and your relationship to the deceased

To make a claim, three essential documents are typically required: the death certificate, a completed claim form, and the original policy document. If these documents are not readily available, a good starting point is to check the deceased's bank statements for evidence of regular premium payments.

Who can claim on a life insurance policy?

The question of who can claim on a life insurance policy is straightforward: while anyone can initiate the claim, only the beneficiaries are entitled to the payout. The beneficiaries tend to be the surviving spouse or civil partner, or the nominated person if the policy was set up in trust.

The beneficiaries will be named on the life insurance document. If an employer has taken out a life insurance policy on behalf of an employee, it is known as a death-in-service benefit.

In such cases, the employer should provide an 'expression of wish' form completed by the deceased, which indicates the intended beneficiary.

The policy may also be paid to the deceased’s estate, where it will be distributed according to a will and will be subject to inheritance taxes.

Why might a claim be rejected?

Claims can be denied for various reasons, such as the cause of death not being covered, non-disclosure of relevant information by the policyholder, or because the policy term has ended. Unlike whole-of-life cover, a term life insurance policy will expire after a set number of years.

If this period has passed, you will not be able to claim. Additionally, certain types of death may not be covered, including death outside the insurance term, by suicide, during an act of war, or while engaging in high-risk or illegal activities.

Should a claim be rejected, the free Financial Ombudsman Service is available to review the decision and can be contacted for an appeal.

Terminal illness cover

While life insurance policies generally do not allow for claims before death, some include terminal illness cover, which is similar to critical illness cover. This provision allows for an early payout if the policyholder has been diagnosed with a terminal illness and is not expected to live long.

Finding the right life insurance policy

Life insurance claims can be a complex and emotional process, but understanding the steps involved can make it more manageable.

MoneySuperMarket is committed to helping you find the right life insurance policy, offering comparisons from leading providers that take into account your personal and medical history.

Remember, while the process may seem overwhelming, you're not alone. Insurers and support services are there to guide you through each step, ensuring that you can focus on healing and honouring the memory of your loved one.