Funeral Insurance Claim: Documents and Steps

To claim funeral insurance, contact the insurer, complete its claim form and send a certified copy of the death certificate. Washington's insurance regulator says each beneficiary files a separate form. You do not need the paper policy to begin, and you can start the claim before you have every document.

What documents do you need for a funeral insurance claim?

Ask the insurer for its list when you first call, because requirements differ by company and policy. Keep copies of everything you send, as Washington's regulator advises.

How do you file a funeral insurance claim, step by step?

1. Find the policy and the insurer. Look for the policy, premium statements or bank payments to an insurer. See below if you cannot find it.
2. Contact the claims department or the agent and say the insured has died. Ask for claim forms and for a list of anything else the company needs.
3. Order certified death certificates. The funeral home usually orders the first copies. See how to get a death certificate and how many you need.
4. Complete the claim form. Match names and dates to the death certificate exactly, and fill in every field.
5. Choose how the money is paid. The form will offer options. See below.
6. Send the form and certificate, and keep a copy of everything.
7. Follow up in writing if you do not hear back, and note each call. Our guide to funeral insurance payout time explains what to expect.

For a policy through an employer, the human resources department usually starts the claim. The guide to notifying insurance companies after a death lists which policies to report.

How do you find a funeral insurance policy you cannot locate?

Check bank statements, tax records and old mail for payments to an insurer. Search email for words like policy or premium. Ask the last employer about group cover, and look in safe deposit boxes and filing cabinets. Texas adds that the state has no way of knowing whether a person had life insurance, so the search is up to you.

Then use the free tools:

• The National Association of Insurance Commissioners runs the Life Insurance Policy Locator, which helps beneficiaries find lost policies and connect with unclaimed death benefits.
• State unclaimed property databases may hold benefits an insurer has turned over to the state.

How is the money paid, and can the funeral home be paid directly?

Washington's regulator says insurers typically offer a lump sum, installment payments, or interest-only payments. For a funeral, a lump sum is the usual choice, because the bill is due now.

If you cannot pay the funeral home before the claim is paid, ask whether it accepts an assignment of benefits. You sign over part of the benefit, and the insurer pays the funeral home directly, with any balance going to you. Not every funeral home does this, and the insurer has to agree, so confirm in writing before you sign the funeral contract. Our guide to assignment of benefits for funerals explains how it works. Washington's regulator also says pre-need funeral insurance pays the funeral provider directly, unlike standard funeral insurance, which pays the beneficiary.

The Funeral Consumers Alliance says most funeral homes expect payment in full up front. See paying for a funeral upfront for ways to cover the gap.

What can delay or block a claim?

• A death in the first two years. The Texas Department of Insurance says life insurance policies have a two-year contestable period, and the company may review the application. Washington's regulator says it will investigate omitted information in that window.
• A lapsed policy. Texas says most policies have a 31-day grace period after a missed premium. A policy that lapsed beyond that may have nothing to pay. Ask the insurer for the premium history in writing. See lapsed funeral insurance.
• Suicide within two years. Texas says companies usually will not pay for a suicide in the first two years.
• Exclusions in the policy. Washington's regulator lists war, military or civilian service and certain airplane accidents as reasons a claim can be denied, depending on the policy. See funeral insurance exclusions.
• Beneficiary problems. If the named person has died, cannot be found or is a minor, payment can be delayed or go through the estate or a court.

If a claim is denied, ask for the reason in writing, check the policy and contact your state department of insurance. Washington's regulator takes complaints at 800-562-6900. See what to do if a funeral insurance claim is denied.

How can you avoid problems for your own beneficiaries?

If you hold a policy, three steps save your family trouble:

• Keep the policy, insurer name and policy number where your family can find them.
• Check your beneficiaries after any marriage, divorce or death. Washington's regulator says an ex-spouse cannot be a beneficiary after a divorce unless a court orders it or you file a new form naming them. See the beneficiary update checklist.
• Think before you name a child. The NAIC says that for a minor beneficiary you should consider setting up a trust or estate arrangement. A lawyer can explain the options in your state.

What to do next

1. Call the insurer, report the death and ask for the claim forms and document list.
2. Ask the funeral home for several certified death certificates.
3. File the claim, keep copies and check for other policies with the free NAIC locator.
4. Use the free checklist below to keep track of the other notifications.