Life insurance is for many people, one of the most concerning types of financial arrangements. This could be why only 35% of Britain’s families have life insurance according to Aviva. People can feel very unsettled when they are purchasing the policy…

30% of men and women who participated in the 2015 Insurance Barometer Study in the USA suggested they avoided buying life insurance because doing so causes them to think about their own mortality.

Unfortunately, there's no easy way to combat this particular quandary – although we certainly try to put people at ease and make the process as straightforward as possible —other than, perhaps, to highlight that the thought of leaving your spouse, or children, or other loved ones in a difficult financial position isn't much more, if at all, appealing than thinking about passing away.

Equally, in many cases the beneficiary will feel awkward discussing the policy with the insured.

But what can be even worse is when the beneficiary comes to make the claim - he or she will still be grieving and hurt or angry that the claim needs to be made at all.

However disturbing as life insurance can be for some people, it is one of the single most important types of insurances. After all, it can provide a better financial future of the loved ones who were dependent on the deceased.

Without adequate insurance many families can find themselves not only emotionally distraught about their loss, but also troubled financially.

Just as it is essential to think about life insurance, it is essential to know how to handle an insurance claim. Being prepared and knowing what to do, will allow you to act faster and more decisively and will ultimately save you unnecessary confusion. It may even help you get your benefit, and the financial relief you need, that much sooner.

Be Prepared Before the Insured Passes Away
The process of handling a life insurance claim will go much more smoothly with some preparation. Life insurance if placed in 'trust' has many advantages. Even if you have a will, trusts are the tax and time-efficient way to make sure that your life cover pays out to the right people at the right time.

At Essential Insurance we’ll put your policy in trust free-of-charge to help mitigate the risk of inheritance tax and avoid a lengthy probate process.

This can be very important since, depending on the circumstances, probate can take time, during which family members are sometimes unable to access the deceased’s bank accounts or sell property to cover expenses.  To benefit from this advantage it is important to do the following before the person dies:

• Keep the policy and related documents in a safe place that can easily be accessed by the beneficiary.
• Discuss Life Insurance with the Insured. It is important for those who will be left behind to have full knowledge of what their situation will be like. As difficult as it may be, you need to have the conversation about what policies are in place, how much cover the person has, and where the policies are stored.

Making Contact with the Insurance Company
Once the person has passed it will be time to notify the insurance company and there will be paperwork to sort out, at a time when this is the last thing on your mind. If possible contact the insurance advisor who sold the policy. At Essential Insurance we can act as an intermediary between you and the insurance company and help you through the process of making your claim.

Every insurer will have a claims team and your insurance advisor will be able to point you in the right direction to help make your claim as easy as they can and give you the support you need throughout the process.

Obtaining the Death Certificate
The insurer will always need to see the original death certificate (as issued by the Registry Office) and there may be other documents or information they will ask for. If the cause of death is not known and the death certificate hasn’t been issued, they may need to see the Coroner’s fact of death certificate.

Whatever the circumstances, they’ll make it clear exactly what they need and try to keep this down to a minimum.

If you are the deceased’s spouse or next of kin, you are likely to receive the death certificate in the natural course of things. If you do not receive it, or you need additional copies, applications for certificates should be made to the Register Office in the district where the death took place.

Submitting Your Claim
It is likely that the insurer will need other information or documents depending on the circumstances of the death and the way the life insurance has been set up.

They might need to see some medical information from the deceased’s doctor and/or some legal documentation. All original documents will be returned. Generally, they’ll need:

• Policy number
• Full name of deceased
• Cause of death
• Place of death
• Type of death certificate you have
• If the deceased left a Will
• If a grant is being obtained
• Details of any spouse/civil partner
• Details of person making the claim

Once the insurer has agreed to pay your claim they’ll usually pay the claim as quickly as they can. On the rare occasion that the deceased dies under unusual circumstances it could take slightly longer to receive payment. You should check the terms and conditions of your particular policy for details.

There is nothing in life quite as distressing or difficult to get through as the loss of a loved one and an insurance claim can never make up for your loss.  However, a life insurance pay out could help you pick up the financial pieces and help you begin to get your life back in order. Being informed about the process of handling a claim is an essential part of that equation.

For advice, call us on 0800 612 8005, we’re here to help and we're available to answer any questions you may have.