Life insurance in Lakewood can help cover funeral expenses and provide financial stability for families after the loss of a loved one. Understanding how the death benefit works is essential to know what to expect.

Beneficiaries

While the policyholder is alive, they can designate beneficiaries to receive the death benefit. Beneficiaries can be anyone the policyholder chooses, including friends or family members. Typically, the insurance company requires the beneficiary’s birthdate and Social Security number to ensure the benefit is distributed to the correct person. The specific information needed may vary by company, so it’s important to consult Colling Insurance Services Inc. to confirm the requirements.

Disbursement

After the policyholder passes away, it’s crucial to notify the insurance company promptly. If the policy was obtained through the policyholder’s workplace, you may need to inform their employer as well. The insurance company will usually verify the death before proceeding with the disbursement.

In cases where suspicious circumstances arise, such as an ongoing murder investigation, the company may delay the disbursement to ensure the death was not caused by foul play. This precaution is standard practice and not a personal judgment.

Once verification is complete, the death benefit is typically disbursed within a few weeks. However, the exact timeline can vary depending on the company. To get a clearer understanding of the timeframe, speak with an agent at Colling Insurance Services Inc.

Most companies deposit the funds directly into an account that beneficiaries can access immediately. Alternatively, some companies may send a check if preferred. The method of disbursement depends on the company and the policyholder’s preferences.

Life insurance policies and procedures can change over time, so it’s important to stay informed. Contact Colling Insurance Services Inc. today to learn more about life insurance options. We are located in the Lakewood, CO area.