Life Insurance Claim Lawyers for Death Benefit Claims

When the deceased bought life insurance cover (or it was created through their superannuation) they should have allocated beneficiaries so they can be identified quickly by the insurer. Ideally, the policyholder will have identified their beneficiaries by providing the required personal details.

• The beneficiary’s full name is spelled correctly
• The beneficiary’s maiden name
• Their date of birth
• Their tax file number

A beneficiary is designated whereas an heir is assumed. If someone dies without having made a will, then his or her next of kin are the people who would be legally eligible to inherit the deceased‘s property. They may have named one or more heirs as beneficiaries on a policy. There are several reasons why the deceased might have named someone else as a beneficiary besides their spouse, children or grandchildren.

• They wanted to allocate some money to take care of others, such as parents or siblings.
• They wanted to allocate money to a family-owned enterprise so it could continue after they have departed.
• They left money to their grandchildren because it was a good tax strategy.

A person who purchases a life insurance policy can choose whether their beneficiaries are revocable or irrevoca­ble. Beneficiaries who are irrevocable cannot be removed from a policy or changed their share without their consent, so it can be difficult to modify these aspects of an insurance plan. Revocable beneficiary changes are fairly simple and you don’t usually require permission unless it is the deceased’s spouse and you live in a common property state.

Insurers sometimes attempt to reduce your death benefit and life insurance entitlements in some situations including:

If part payment has already been made.

• The insurance company may say the applicant knowingly provided false information when applying for insurance, the insurer may be able to deny benefits or even cancel the policy entirely.
• If there were any outstanding loans against the cash values of the policies, then they would be paid off before the death benefit was applied.
• If the policy had a variable term length, the payouts would likely be less than the original premium paid.

Some life insurance policies include accelerated death benefits (optional provision) which allow policyholders who have a terminal illness to access some of their death benefits while they’re still alive. Usually, this helps them pay for necessary medical expenses. A life insurance policy may require proof of life expectancy from a medical provider before they will pay out any benefits.

Life insurance companies learn of an insured’s death and then use the information they have available to them to attempt to locate all beneficiary accounts. However, people often share similar names and can be difficult to locate. They might not be looking for beneficiaries because they haven’t received a death certification yet and don’t know whether the insured person has passed away.

If you have an older family member who has not yet made any decisions regarding his or her estate, you should ask him or her whether he or she has named you as a beneficiary for his or her final assets. You should check whether there is any change in the company’s policies regarding this issue. Also, if you already knew about the policy, then you should find out where the relevant documents are stored so that they can be accessed when needed.

Most life insurers will make a lump sum death benefit payout. This can be a large sum of money that you can spend as you wish. You could pay off your mortgage, have a holiday or buy a car. It is a good idea to consult with a financial advisor to make the most of your payout.

You can also opt for having your death benefit paid out over time instead of a lump sum. In this case, the insurer retains the funds in an interest-bearing account and gives you a monthly payment until the funds are depleted. You could also choose to not take money from your account and allow the balance to grow.