You may be worried about funeral expenses, bond repayments, school fees or other expenses and are reliant upon receiving payment from your loved one’s life policy.
At what is always a difficult time for the family, most life insurance companies will do their best to handle your claim as quickly and efficiently as possible – but exactly how quick is that? How long can you expect to wait until you receive your payout?
If the claim is straightforward and the insurer has no reason to decline or fight your claim, then it would be very rare for your payment to take longer than two months; but more likely within two to three weeks.
At MiWayLife, we have an innovative combined funeral and life cover. When a claim is submitted, MiWayLife will pay out the funeral portion of the policyholder’s life insurance within 48 hours, meaning that the remaining loved ones can hold a dignified funeral immediately without worrying about the financial implications. We aim to have the remainder of your claim paid as quickly as possible, and this is often within a couple of weeks of the initial claim.
Of course, in order to make sure that your claim payment happens as quickly as possible it is important that you submit all the correct documents – missing information could result in delays in processing your claim at a time when you already have a lot to deal with. If there are problems with the claim, then it could take far longer. The most common issues are when a policyholder has omitted information or lied about his or her health or when their cause of death is a specified exclusion; if the policyholder committed suicide, for example, this often isn’t covered by life insurance.
It is also important that the policyholder makes sure that at least one beneficiary is aware of their life insurance details and how to claim. If you know a loved one has taken life insurance, ask them how you can access the details in the event that they pass. If you are a policyholder, be sure to tell your loved ones who your policy is with to avoid any unnecessary delays in locating and claiming from the insurance should something happen to you.