Guide · Money and accounts
Claiming a life insurance payout
What documents the insurer needs, how long claims take, and what to do if the policy is missing or the carrier is unknown.
Most insurers pay a clean claim within thirty days of receiving a certified death certificate and the claim form. Lump-sum proceeds to a named beneficiary are federally tax-free. If no policy can be found, search the NAIC Life Insurance Policy Locator, which queries participating carriers nationwide.
Step by step
Locate the policy
Check the filing cabinet, email for paperless statements, and the employer's HR file for group coverage. Search the NAIC Policy Locator if nothing turns up.
Contact each carrier
Call the carrier or use the online claims portal. Each beneficiary files their own claim.
Submit the claim packet
Carriers ask for a certified death certificate, a completed claim form, and proof of identity for each beneficiary.
Choose payout method
Lump sum, retained asset account, or annuity. Lump sum is the simplest and almost always the right default.
Receive payment
Most clean claims pay within thirty days. Carriers must pay interest on delays in many states.
Common questions
Is a life insurance payout taxable?
Federal income tax does not apply to a lump-sum death benefit paid to a named beneficiary. Interest earned during a delay is taxable.
What if the beneficiary is the estate?
The proceeds enter probate and pass under the will, which slows payout and exposes them to creditor claims. A named individual beneficiary is almost always preferable.