Alyssa Lane
When a loved one passes away, it can be difficult to know what to do and when. One of the necessary steps after a death is to notify the relevant life insurance company so that beneficiaries can receive their death benefit. This is usually done by the beneficiaries or family members, but some states require insurance companies to check the Social Security Master Death File and notify beneficiaries. However, this can take time, so it's important to be proactive. To make a claim, you'll need to fill out the necessary forms, which can be done with the help of an insurance agent or the company directly, and provide a certified copy of the death certificate.
| Characteristics | Values |
|---|---|
| Who should notify the life insurance company? | Beneficiaries or other family members |
| How to notify the life insurance company? | Contact the company directly or through an insurance agent |
| What to submit? | Certified copy of the death certificate from the funeral director with the policy claim |
| When to notify? | As soon as possible |
| How to find out if you are a beneficiary? | Check the policy, ask the policyholder, or use the National Association of Insurance Commissioners' (NAIC) Life Insurance Policy Locator (LPL) tool |
| How to file a claim? | Call 1-800-633-4542 (between 8:30 am - 4:00 pm EST, Monday - Friday) or mail the claim form to OFEGLI, P.O. Box 6080 Scranton, PA 18505-6080 |
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What You'll Learn
How to notify life insurance of death
Notifying life insurance of a death involves several steps, and it is important to act promptly to ensure that benefits are received and that all necessary parties are informed. Here is a guide on how to notify life insurance of a death:
Notify the Relevant Authorities and Organisations:
Firstly, it is crucial to inform the necessary authorities and organisations about the death. This includes reporting the death to the Social Security Administration (SSA) and obtaining certified copies of the death certificate. The funeral director usually handles this, but if they do not, it is the responsibility of the next of kin or legal representative to do so promptly.
Contact the Life Insurance Provider:
Next, get in touch with the deceased's life insurance provider as soon as possible. Different providers may have specific requirements and processes for filing a claim, so it is important to refer to their instructions. However, some standard information and documents are typically required.
Gather Necessary Information and Documents:
When notifying the life insurance company, you will generally need to provide the following:
- The deceased's full name
- Social Security number or retirement claim number
- Date of death
- Certified copies of the death certificate
Complete and Submit the Claim Form:
Life insurance providers often have claim forms available on their websites, which can be downloaded, completed, and submitted ahead of time. Carefully read and follow the instructions provided with the form. In addition to the completed form, you will need to include the certified copy of the death certificate. The claim form can then be printed and either mailed or delivered in person to the life insurance company's office.
Follow Up with a Phone Call:
After submitting the claim form, it is a good idea to follow up with a phone call to confirm receipt and ensure the process is on track. The Office of Federal Employees' Group Life Insurance, for example, can be contacted at 1-800-633-4542 during standard business hours (8:30 am - 4:00 pm EST, Monday to Friday).
Additional Considerations:
If the deceased was a veteran, you must also contact the Department of Veterans Affairs (VA) to discuss benefits and life insurance. Furthermore, remember to notify banks, credit card companies, credit bureaus, and other financial institutions, as well as cancel any memberships, subscriptions, and utilities in the deceased's name.
Notifying life insurance of a death involves several steps, but by promptly gathering the necessary information and following the outlined procedures, you can ensure that the process proceeds smoothly and that the benefits are received by the designated beneficiaries.
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Who to notify when someone dies
When someone dies, there are several people and organisations that need to be notified. Here is a list of who to inform when someone dies:
Close Family and Friends
First, inform the deceased person's close family and friends. This can be done through individual phone calls, a group text or mass email, or a post on social media. Ask the recipients to spread the word by notifying others connected to the deceased.
The Deceased's Doctor, Lawyer, Personal Representative, and Trustee
Notify the deceased's doctor and lawyer, if applicable. If there is a will, inform the Personal Representative and Trustee named in the will. The Personal Representative, sometimes called the Executor or Executrix, is responsible for carrying out the terms of the will and managing the deceased's estate.
Government Agencies and Programs
Notify government agencies and programs that the deceased was part of or received benefits from. This includes the Social Security Administration (SSA), which can be done by calling 1-800-772-1213 or visiting your local SSA office. The SSA will notify Medicare. You may also be eligible for Social Security death benefits and survivors' benefits.
If the deceased was a veteran, contact the Department of Veterans Affairs (VA) about burial benefits, death benefits, survivor benefits, and veterans' life insurance. Report a military retiree's death to the Defense Finance and Accounting Service (DFAS).
Financial Institutions and Credit Bureaus
Notify banks, credit card companies, and other financial institutions of the death. If you shared a joint account with the deceased, you will need to notify the bank and may need to close the account. Cut up and destroy the deceased's credit cards to prevent theft and identity fraud. Contact credit bureaus to notify them of the death, and they will send an alert to card issuers.
Employers and Memberships
Inform the deceased's employer so they can handle payroll matters, workload, and any death benefits or pension for the surviving spouse. Contact any organisations where the deceased had memberships or subscriptions, such as social groups or churches.
Insurance Companies
Notify life insurance companies and long-term care (LTC) insurance companies of the death. You will need an original death certificate and policy numbers to make claims on any policies.
U.S. Embassy or Consulate
If the death occurred in a foreign country, notify the U.S. embassy or consulate in that country. They can assist with communicating with local authorities and making arrangements.
It is important to keep track of all the notifications and benefit applications, as it can take some time for benefits to arrive. Having a list of contacts and a record of calls made can help ensure that all necessary parties have been informed.
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How to file a life insurance claim
The death of a loved one can be a difficult time, and filing a life insurance claim can be a complex process. Here is a step-by-step guide on how to file a life insurance claim:
- Notify the relevant organizations: Contact the life insurance company as soon as possible to inform them of the death. If the deceased was a veteran, you must notify the Department of Veterans Affairs (VA) to discuss benefits and life insurance. For federal employees, notify the Office of Personnel Management (OPM) and the human resources office of the employee's agency.
- Gather important documents: Obtain multiple certified copies of the death certificate, as this will be required for most agencies and programs. If the deceased was a veteran, you may also need to provide a DD Form 214, Certificate of Release or Discharge from Active Duty, or other relevant forms.
- Complete the necessary forms: Fill out the life insurance claim form provided by the insurance company or download and complete the form ahead of time from their website. Ensure you carefully follow the instructions on the form. Common forms include the VA Form 29-4125e for VA Life Insurance and Form SGLV 8283 for Veteran death benefits.
- Submit the claim: Submit the completed claim form, along with the certified copy of the death certificate, to the insurance company. This can often be done electronically, by mail, or in person.
- Follow up: If you have not received a response regarding your claim within 30 days, contact the insurance company's customer service department to inquire about the status of your claim. Be prepared to provide information such as the name of the insured and any relevant policy details.
- Understand tax implications: While life insurance death benefits are generally exempt from income tax, it is recommended to consult with a tax advisor to understand any potential tax implications of receiving a death benefit payment.
- Review and update beneficiaries: If you are the beneficiary of the policy, ensure your details are up to date with the insurance company. Review the policy to understand whether beneficiaries are designated as revocable or irrevocable, as this may impact any future changes you wish to make.
- Consider additional benefits: Depending on the situation, there may be additional benefits available. For example, some policies offer an Accelerated Death Benefit, allowing policyholders with a terminal illness to access a portion of the benefit while still alive to cover necessary care.
Remember to take your time and carefully review all the information provided by the insurance company. Each company may have slightly different processes, so ensure you understand their specific requirements.
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What happens if you don't notify life insurance of death
When a life insurance company learns of an insured person's death, they will try to locate the beneficiaries. However, if the company hasn't been provided with a death certificate, they may not know that the insured has died. Therefore, it is important to notify the life insurance company as soon as possible after the death of a loved one.
In the United States, the funeral director should report the death to the Social Security Administration (SSA), who will notify Medicare. Any Social Security benefits the deceased was receiving will stop, and any payment for the month of death must be returned. It is also necessary to file the deceased's final income tax return, including all unreported income up to their date of death.
If the deceased was a veteran, you must notify the Department of Veterans Affairs (VA) to cancel benefits such as compensation, pension, and education. You should also report the death to the Defense Finance and Accounting Service (DFAS), who will help process any annuity due to survivors. If the deceased was a federal employee or retiree, you must report their death to the Office of Personnel Management (OPM), who will also assist with processing any annuity or survivor benefits.
In addition to government agencies, you should also notify the deceased's bank, credit card companies, credit bureaus, and other financial organizations. You may need to provide a certified copy of the death certificate to close or transfer accounts. It is also important to contact utilities and any places where the deceased had memberships or subscriptions.
While it is not explicitly stated what happens if you don't notify life insurance of a death, it is clear that there are numerous administrative tasks that require the next of kin or executor to notify relevant parties of the death. Not doing so may result in the continuation of payments and subscriptions that the deceased was receiving or paying for, which could cause financial and legal issues down the line.
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What to do if you're a beneficiary
If you're a beneficiary of a life insurance policy, there are a few things you should know and some steps you may need to take. Firstly, it's important to understand the different types of beneficiaries and the process of receiving benefits.
There are two main types of beneficiaries: primary and contingent. A primary beneficiary is typically a spouse, child, or another close family member who is first in line to receive the death benefit from the life insurance policy. If the primary beneficiary dies before or simultaneously with the policyholder, the benefit goes to the contingent beneficiary. It's worth noting that being one of several beneficiaries doesn't guarantee an equal share of the death benefits. The policyholder may have specified the percentage of the benefit that each beneficiary should receive.
If you're a minor (under 18 years old), you won't receive the benefit directly until you turn 18. In such cases, the money may be used by your parent or guardian to cover daily expenses or education costs. Additionally, if the policy was written under trust, the lump sum would be paid to the surviving trustees, who would then distribute it to the beneficiaries.
To receive the benefits, you may need to locate the policy documents, especially if you're unsure whether you're a beneficiary or if the deceased had life insurance. Usually, the executor of the will or the trustee should contact you if you're a named beneficiary. However, if you're unsure, you can try to find the policy documents, especially if you're a close relative or have permission to access them.
Once you've confirmed your status as a beneficiary, you'll need to gather information about the policy. This includes understanding the type of policy, any specific instructions from the policyholder, and the process for claiming the benefits. It's a good idea to contact the insurance company directly to inquire about the next steps and provide them with any necessary documentation, such as a certified copy of the death certificate. Keep in mind that death benefits are usually exempt from income tax, but it's recommended to consult a tax advisor for clarification.
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Frequently asked questions
A death benefit is the money – a lump sum or otherwise – that gets paid to your beneficiaries if you die while your life insurance policy is in force.
If you are a beneficiary, you should contact the insurance company directly. You will need to submit a certified copy of the death certificate from the funeral director with the policy claim.
In most cases, beneficiaries are informed by the policyholder ahead of time. If you are unsure, you can look for the insurance policy in the deceased's personal papers or check their checkbook register for evidence of payments.
Once the claim is submitted, a settlement should be issued to you shortly. You will then need to determine how the proceeds will be distributed. You can choose to receive the entire death benefit in a single amount or opt for a Retained Asset Account, which is like a checking account maintained with the life insurance company.
If the deceased was covered by the Federal Employees' Group Life Insurance Program, you will need to report the death to the human resources office of the employee's employing agency. You will need the employee's full name, social security number, and date of death. The agency will then send you the life insurance claim form.
