A Practical Guide to Life Insurance Claims & What to Do After a Loss

The loss of a loved one is one of life’s most difficult experiences. In the midst of grief, you may also be faced with important decisions and responsibilities. This guide will walk you through the essential steps to take immediately following a death, including reaching out to a life insurance agent who can help guide you through the claims process, as well as assist you with other aspects of your deceased loved one’s affairs.

Give Yourself Support

In the first days and weeks after a loss, emotions can feel overwhelming. If you are needed to make major decisions on behalf of the deceased, don’t do it alone. Seek support from a family member, trusted advisor, or a professional who can help you think clearly during a difficult time.

Arrange Funeral Services

The first step of arranging funeral services for a loved one is usually choosing a funeral home. After that, the funeral director will guide you through the planning process, including:

• Selecting services and arrangements
• Providing pricing information
• Offering an itemized cost breakdown before you commit

We recommend asking for a complete price list and being upfront about your funeral budget, while keeping in mind that funerals typically cost upwards of $7,500.

Obtain Death Certificates

Death certificates are needed to handle nearly every aspect of your deceased loved one’s affairs. They can be obtained through the funeral director or the county health department.

NOTE – In most cases, a photocopy will not suffice because it lacks the raised registrar's seal that makes it valid.

Gather Important Documents:

The following documents should be collected as soon as possible in order to keep things moving quickly:

• Marriage Certificate (if applicable)
• Birth Certificates (deceased and dependents)
• Social Security numbers
• Original will
• Financial records (bank accounts, investments, property deeds)
• Recent tax returns
• Military discharge papers (if applicable)

Tip: Don’t throw away any insurance documents, even if you think they’re inactive.

Contact a Lawyer

A legal professional can help you navigate probate, which is the legal process of settling debts and distributing assets.

Assets like life insurance, retirement accounts, and jointly owned property usually avoid probate, but if there is no will in place, the state determines how assets are distributed.

Notify the Employer

If your loved one was employed at the time of their death, contact the employer and ask about:

• Group life insurance benefits
• Final paycheck
• Vacation or sick pay
• Retirement benefits

Take Inventory of Finances

It is helpful to think like an accountant during this stage and identify assets and liabilities.

Assets may include:

• Bank accounts
• Investments
• Insurance policies

Liabilities may include:

• Loans
• Credit cards
• Mortgages

Identifying these things will help you manage any financial responsibilities and avoid missing anything.

Watch the Mail

Mail can reveal accounts or services in your deceased loved one’s possession that you were not aware of. Be sure to monitor any incoming correspondence, cancel unnecessary subscriptions, and follow up on any bills or statements that are addressed to them.

Handle Any Bills and Debts

Make a plan to address ongoing financial obligations, including: utilities, mortgage or rent, credit cards, and loans. Try to stay organized and up to date to avoid any late payments or penalties.

File Life Insurance Claims

Contact all life insurance companies where policies for the deceased may exist, and request claim forms along with instructions for completing them.

Depending on the insurer, beneficiaries may have options for how proceeds are paid. For example, with Missouri Farm Bureau Insurance, beneficiaries may choose to leave the full benefit on deposit to earn interest for up to one year, or receive the entire amount at once. Partial withdrawals are not available. Beneficiaries may also elect a settlement option, which may allow access to funds over time based on the option selected. A Missouri Farm Bureau insurance agent can help explain these choices and assist in determining which option best fits your needs.

Notify the Social Security Administration

The United States Social Security Administration should be informed as soon as possible after the death of your loved one. In many cases, the funeral director will handle this, you will just need to provide them with the deceased’s Social Security number.

In some cases, survivor benefits are available for eligible family members, including a one-time payment of $255 for a surviving spouse or child. Contact the Social Security Administration (1-800-772-1213) to apply for these benefits.

Contact Financial Institutions

Be sure to notify any financial institutions where the deceased may have held accounts, as well as any health insurance providers or creditors. Submit any outstanding medical claims and inquire about coverage.

Explore Additional Benefits:

As a loved one of the deceased, you may be eligible for:

• Employer benefits such as pension funds, unpaid wages, or bonuses
• Credit life insurance may help pay off certain debts
• If the deceased was a veteran, contact the Department of Veterans Affairs to claim any benefits you may be eligible for

Update Accounts and Ownership

After all immediate matters are handled, be sure to update all relevant records:

• Change names on bank and investment accounts
• Transfer vehicle titles
• Update insurance policies
• Update beneficiary designations on your own accounts and policies

Final Thoughts

There truly is no easy way to navigate the loss of a loved one, but having a clear checklist can reduce the stress you may feel during this emotional time. Be sure to take things one step at a time and ask for help when you feel overwhelmed. Remember that there is no rush to make every single decision right away, especially when it comes to financial matters.