How Long Does It Take To Process A Life Insurance Claim In California?

Are you a beneficiary expecting a life insurance payout? If so, read on to learn what you can expect as a beneficiary, what you need to know about processing a life insurance claim, and what to do if the insurance company is taking longer than they should to provide you with your life insurance money.

In order to receive a life insurance payout, the beneficiary of the policy must file a life insurance claim as soon as possible after the death of the policyholder. Typically the payout will be received 30 to 60 days after the claim is entered, and beneficiaries can choose to receive a lump sum or have the funds deposited into a special account. If the total amount is not paid within a reasonable time, beneficiaries reserve the right to collect interest on the payout.

If you have questions about being a beneficiary to a life insurance policy, or have questions about the process of paying out a claim, contact McKennon Law Group PC today to schedule a free, no-obligation consultation. We’ll address any questions you have and ensure you understand the process that’s in front of you.

What Happens If A Beneficiary Is Not Designated While Enrolling In A Life Insurance Policy

It is not mandatory to designate beneficiaries when enrolling in a life insurance policy, but it would be wise to do so. Since a life insurance policy is a legally binding contract, insurance companies can only pay those listed as beneficiaries once the policyholder passes away. If a beneficiary has not been listed, the life insurance policy will go through the estate in probate, or will be distributed to next of kin. Sometimes mistakes or changes to beneficiary information on the policy can lead to payout delays. If your payout is delayed, consult with a life insurance attorney to help with the process.

Why Do Insurance Companies Sometimes Delay Or Deny Claims?

Insurance companies will also delay or deny claims for life insurance payouts with specific clauses listed in the policy. For example, if a policyholder dies within the first two years of the policy, the insurance company must contest the policy and investigate for material misrepresentation. Some life insurance policies contain a suicide clause, refusing to pay if the policyholder ends their own life. If the cause of death is homicide or accidental death, some life insurance companies will require a further investigation or a statement from law enforcement to make sure the beneficiary is not a suspect in the crime. The beneficiary must be acquitted of the crime in order to receive the payout.

What Should I Do If My Insurance Company Is Delaying In Paying Out My Claim?

All insurance companies are required to work on a good faith basis. Good faith is “a term that generally describes honest dealing. Depending on the exact setting, good faith may require an honest belief or purpose, faithful performance of duties, observance of fair dealing standards, or an absence of fraudulent intent.”

If you believe that your insurance company is not acting in good faith, you have the right to contact a lawyer and seek justice. Our lawyers know that insurance companies have a bottom line, and that they always look to make as much money as they can, and save as much money as they can. For this reason, they sometimes delay in paying out a claim, or deny it entirely. In these cases, our lawyers will communicate back and forth with your insurance company in order to investigate the situation and see whether or not the insurance company is operating in bad faith.

If not, we can still look into the situation in order to try and understand what is happening. With extensive knowledge of state and local law, our legal team are the representatives you need to ensure justice is being upheld and that you have access to the money you rightfully deserve as a beneficiary.

Schedule A Free, No-Obligation Consultation With McKennon Law Group PC If You Have Questions About Receiving A Life Insurance Payout As A Beneficiary

Not all California lawyers offer a free consultation for those in need of assistance with life insurance payouts. However, our lawyers at McKennon Law Group PC do. In your initial consultation, we take the time to understand your questions about life insurance, receiving your beneficiary money, and what you can expect as a beneficiary. And, if you feel that your life insurance company is acting in bad faith or is purposely delaying in paying out a claim, we will take action and fight back on your behalf.