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What Happens If An Insured Person Dies?

What Happens If An Insured Person Dies? Currently, life insurance is one of the most complete protection, both for the person who hires the policy and for her family, in cases of death, disability or dependency. Although when talking about this kind of insurance, coverage of death is the best known, the truth is that the benefits of these policies also include other personal and economic situations related to the risk that the insured loses its abilities to work.

There are different life insurance that is adapted to the expectations and needs of each family and all have in common the same efforts that there is what to do if the insured dies. The death of a loved one is a very hard trance, but in these cases must follow a procedure to deal with some aspects to collect the amount that that person had been reserved for relatives.


What Happens If An Insured Person Dies?
What Happens If An Insured Person Dies?

How Cash Insured Life Insurance?

Health Insurance (Life Ins): What happens to a policy after the death of an insured member?
  • The first step is to check if the deceased person had life insurance or not. To this end, it is necessary to go to the register of insurance of life, where we shall inform such aspect and also offer us other information relating to the policy, the insurance company, or the name of the beneficiary.
  • It is necessary to issue the death certificate of the insured in the Civil Register and report the news to the insurer in writing within a period that may not exceed 7 days rule.
  • The beneficiary of the life insurance must pay the tax of successions and donations (ISD). This requirement is essential for the insurance company to pay the amount of the policy. It is important to clarify that this tax, only for the amount of the insurance, shall be paid where you want to receive it before there is the processing of inheritance. Given that compensation for the secure form part of the whole of the inheritance is paid once the part of the tax policy, it will be necessary to pay off the rest of the legacy within 6 months.
  • In addition to the certificate of death and the liquidation of the inheritance and gift tax, the company may request another series of documents the beneficiary to manage payment, such as medical history where death has occurred by disease, copy of the will, proof of the status of the beneficiary if none were specified in the policy, reports police or if the death was by accident, etc. In short, the insurer may request any information that will help you to assess whether the beneficiary is entitled to the payment of compensation or not.
  • Until the company offers the final resolution of the case, it will offer a minimum amount of insured capital normally used to pay for the funeral service, such as funeral insurance. If the insurer determines that the claim is not true, the beneficiary must return this advancement.

Once these steps to collect the insurance of life of an insured person, the company has 3 months to pay the capital of policy, counted since it has been reported the death and delivered all the necessary documentation.

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