How long does it take to receive life insurance money?

Answer 1

Initially, you must file a claim for benefits with the insurer, accompanied with proof of death, such as a death certificate. The life insurer will have a protocol outlining what is required.

Barring complications or competing claims to the proceeds, the insurer will issue a check. Presumptively, the person named on the application for the life insurance will be the correct recipient, but there could be competing claims, or a question could arise as to whether the policy was in force at the time of death. Questions such as these could delay the remittance of proceeds.

The statutes of the State in which the policy was issued likely provide that, absent a coverage or other question by the insured, payment must be processed within a stated number of days after the written claim for benefits, the death certificate, and other necessary information is received. Often, the statutory period is 30 days. If not paid within that period, the insurer may be liable for interest at a statutory rate.