Filing a life insurance claim is one of the few estate settlement tasks that can bring financial relief relatively quickly. Most insurance companies pay claims within 30 to 60 days of receiving complete documentation — but only if you file promptly and correctly.
Finding All Life Insurance Policies
- —Check personal files, safe deposit boxes, and email for premium notices or policy documents
- —Contact the deceased's employer — many employers provide group life insurance
- —Search the NAIC Life Insurance Policy Locator at naic.org (free, takes 90 days)
- —Review bank and credit card statements for premium payments
- —Check old tax returns for interest income from life insurance policies
How to File a Life Insurance Claim
Contact the insurance company's claims department. Request the claim form specific to that company. Submit: the completed claim form, a certified death certificate, and the beneficiary's government-issued ID. Some companies also require the original policy document.
Most companies process claims within 30 to 60 days of receiving complete documentation. Some offer expedited processing for straightforward cases.
Common Reasons Claims Are Denied
- —Policy lapsed due to non-payment of premiums
- —Death occurred during the contestability period (typically the first 2 years of the policy)
- —Material misrepresentation on the original application (undisclosed health conditions, smoking status)
- —Excluded cause of death (varies by policy — check exclusions)
If your claim is denied, you have the right to appeal. Request the specific reason for denial in writing. Consult with an insurance attorney if the denial seems unjustified.
Taxes on Life Insurance Payouts
Life insurance proceeds paid to named beneficiaries are generally not subject to federal income tax. Exceptions exist if the policy was owned by the deceased and the estate exceeds the federal estate tax exemption ($13.61 million in 2024), or if the payout includes accumulated interest. Consult a tax professional if the estate is large.
How Sedare Helps with Insurance Notifications
Sedare generates insurer-specific notification letters pre-filled with all identifiers insurance companies require from the death certificate. Upload the death certificate once and get letters for all insurance providers in the estate — plus banks, government agencies, and other institutions.
Notify all insurance companies with one upload
Sedare generates pre-filled notification letters for insurance companies, banks, government agencies, and more. $49 per estate.
Get started at sedare.ai →Related reading: The Complete Guide to Notifying Institutions After a Death, Executor Checklist: Your First 30 Days, How to Close a Bank Account After Death.
Last updated March 2026.
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