If your loved one has just passed away, you might not know where to turn. You need support yourself at this trying time. You’ll also want to give the deceased a moving farewell and tidy up their affairs. Often, this will mandate considerable spending. If you don’t have the money, you might be at a loss on how to proceed. Still, if your loved one left behind final expense insurance, you might be able to file for the policy’s payout. How can you do so?
Understanding the Coverage Available
Final expense insurance is similar to life insurance. It provides a payout to a beneficiary after the policyholder’s death. Most people buy it to help survivors take care of important costs in the aftermath of their passing.
Yet, coverage varies from life insurance in a couple of ways. First, it usually does not contain as many funding options as a life policy. Also, the payout often is lower than a life insurance payout. Many policies contain no more than $25-$30,000 in coverage.
Even so, final expense coverage can help survivors pay many of the immediate costs related to a death. As a survivor, you might use the money to:
- Cover the deceased’s funeral costs
- Pay outstanding medical or care bills
- Settle final expenses like credit card payments or other debt
Coverage is flexible. Unless the policyholder requested the money go to a certain purpose, you might use it in any way you like. Therefore, you can distribute it to your best needs.
Contacting the Insurance Company
To receive the money from the final expense policy, you will have to file a claim. That will mean notifying the insurer of the death. In almost all cases, there is no time limit in which you must file. However, by doing so immediately following the death, you might be able to get the money faster.
You will likely have to provide proof that the policyholder has died. Usually, you can provide this by sending the insurer a copy of the death certificate. Other documentation like a physician's letter or medical record might also suffice. You also might have to provide proof of your identity as the policy’s beneficiary. So, the insurer can verify that the money goes to the correct place. Steps like these help insurance companies and families avoid potential insurance fraud. Gather all documentation before contacting the insurer.
Receiving the Claim
In most cases, the insurer will process the policy claim expediently. You might even be able to receive the money within a couple of weeks of filing. In the meantime, calculate the expenses that might need coverage with the money. You'll have your ducks in a row when the funds arrive.