Who is Allowed to File a Life Insurance Claim?

Posted in Life Insurance

March 25th, 2009

If you own a life insurance policy and wonder about the ins and outs of who can file a claim after you die, youve come to the right place. Of course, if youve named a beneficiary, you want to make sure that they receive the benefits. But if something happens to that person, its good to know who else can claim the funds.

Who is a Life Insurance Beneficiary?

When you purchase a life insurance policy, your goal is to make sure that you leave money behind to one or more loved ones so they wont have to deal with debt or financial hardship. The person(s) you leave the money to are beneficiaries. While some choose to leave their money to a primary beneficiary, others choose to leave them to either a group of people (class beneficiaries).

If you have set up your policy to be paid to class beneficiaries, then any of those people you named can claim the money. However, if you have only left the money to a primary beneficiary, this is the only person who can file a claim.

What if the Primary Beneficiary is No Longer Alive?

As mentioned previously, when the insured creates the life insurance policy, the primary beneficiary is the one who can file a claim. However, if this person dies, who is next in line to receive that money? If the insured put down a contingent beneficiary then this is the person who will receive the proceeds. Also, if the primary beneficiary was already receiving installment payments and dies, the contingent beneficiary will receive the remaining payments.

What if No One is Around to Claim the Funds?

If it happens that no beneficiary listed on a policy is alive then you may be wondering who can file a claim? In this case, the funds will proceed to a court where they will either be distributed to the insureds estate (i.e. will or trust), or they will be distributed to new beneficiaries named by the court. Also remember that it is there is no expiration date on life insurance claims.

Its good to know that there are a number of ways to make sure that your intended beneficiaries receive their life insurance proceeds. This way, you dont have to bite your nails wondering who can file a claim and if your money will fall into the wrong hands.