Why does it take so long for life insurance to pay for death benefits?

Question

Why does it take so long for life insurance to pay for death benefits?

Answer 1

It depends.  They need to get a claim and a death certificate.  If the death is suspicious, they may need to investigate.  If they can't locate the beneficiaries, they may need to track them down.  If the policy is through an employer, maybe the employer is holding up the claim since there are parts that they need to fill out on the form as well.

The good news is that a beneficiary should receive interest on the claim for the time it was in "limbo".

Answer 2

If your living in America,

Go rent Michael Moores "SICKO" its well worth the watch.

Answer 3

they want to make sure the person insn't going to become a zombie.  or, they just want to hold on to their money for as long as they can because then you can't pay for the funeral with the money - forces you to pay by other means.  because they are evil and deserve to go to h**l.  any of these 3 reasons will do.

Answer 4

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Answer 5

They must receive verification from the grim reaper home office.

Answer 6

It normally doesn't once they are presented with the correct verification of death documents.

Answer 7

They don't want to let go of their money.  It shouldn't take as long as it does.  They drag their feet.

Answer 8

Because they have the luxury of creating systems that ultimately tie up the process of sending the check.

Answer 9

They usually cut the check within a couple of weeks of getting the completed form and death certificate.

If the insured died during the contestability period (2 years in most states), they do spend a little extra time making sure there wasn't a mis-representation on the application (ie. no one lied to get insurance or a better rate).  This might include the release of medical records, which you might be able to speed along.  If you are the executor, check with the company and offer your help if they got stuck getting a piece of information.

Sorry for your loss.

Answer 10

it depends on how long it takes for them to get the information they need.  once they have everything needed to process the claim then it usually only takes a few days to a week or so before the check is cut and mailed.

Answer 11

Because there is such a high rate of attempted insurance fraud associated with life insurance. They want to be absolutley sure they have all needed documentation and make sure that everything on the application has been verified.

Despite what many people think, not ALL insurance companies are monsters. There are MANY reputable companies that handle claims ethically. You just never hear about them because the people who were completely satisfied with their company don't go out of their way to post how great everything was on the internet. Unfortunately, you only hear about the negative feedback.

Also, if you have personally experienced the situation you're asking about, my condolences to you and your family.