What happens in the transition period after you die but a claim has not been filed? Do your beneficiaries have to continue paying the premium to keep the policy from lapsing until they are able to file a claim? And even then what if the claim takes 6 months, do you have to keep paying until you’re paid out?
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I had my husband’s policy set on autopay. After he died and before I submitted the claim, they processed a premium payment. When they paid out the policy, it included a refund for that post-death premium.
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No, the policy ends when the insured dies. No more premiums are needed, and no dividends would be earned (though interest might be). The money is just there waiting to be claimed.
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Death benefits - no. Any benefits while they are alive - maybe.
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The beneficiary should get that rather quickly. Make sure they have the paperwork to contact them.
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It shouldn’t take that long. We mail out checks next day
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Death should be reported right away to the insurance company which is fairly easy if you know the company. No need to pay premium since death occurred. It is okay even if takes awhile to claim but it puts you in disadvantage since money will just be sitting in the company until claim process is completed.
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Claims by law have to be paid within 30 days of filing, so it should not take 6 months unless the death has to be investigated.
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This is a simplified view and can be misleading. There are regulations on how long insurance companies have to pay a claim, but the timeline starts only after they receive all necessary documents. These documents usually include a final death certificate with the cause and manner of death, which can sometimes take months to get, depending on the situation and where the person passed away.