How to Claim Life Insurance After Death: A Step-by-Step Guide

A stack of unpaid bills, a funeral to fund, and accounts frozen in the decedent's name — and somewhere in a file cabinet or email folder is a life insurance policy that should pay out quickly. The problem is most people have never filed a life insurance claim before and are not sure what the process looks like or how long it takes.

Life insurance claims are actually one of the simpler tasks in estate settlement, but only if you move through the steps in the right order. Here is the complete process.

Step 1: Locate the Policy

Before you can file a claim, you need to identify the insurance company and the policy number. Start by searching:

• Physical files, filing cabinets, and safes in the decedent's home
• Email accounts, searching for the insurer's name or terms like "policy," "premium," or "beneficiary"
• Bank statements for recurring monthly or annual payments to an insurance company
• Employer HR documents if the decedent had group life insurance through work
• Safe deposit boxes

If you cannot locate a policy but believe one may exist, Montana residents can contact the National Association of Insurance Commissioners (NAIC) Life Insurance Policy Locator, a free service that queries participating insurers on your behalf. The Montana Commissioner of Securities and Insurance at csimt.gov also maintains consumer resources for locating policies and filing complaints if a claim is delayed without justification.

For employer-provided group life insurance, contact the HR department or benefits administrator. These policies are often separate from any private coverage the decedent may have purchased independently.

Step 2: Determine Who the Beneficiary Is

Life insurance proceeds pass completely outside of the Montana probate process if a living named beneficiary exists. The money goes directly to whoever is listed on the policy — it does not matter what the will says, what the family expects, or how the rest of the estate is distributed.

Before filing a claim, confirm that you are the named beneficiary (or one of them). The insurance company will not process a claim from someone who is not named in the policy documents.

If the named beneficiary has predeceased the decedent and no contingent beneficiary was designated, the proceeds may default to the decedent's estate, in which case the money becomes a probate asset and is distributed according to the will or Montana's intestate succession laws. This also means creditors can potentially reach those funds, which is one reason why keeping beneficiary designations current matters.

Step 3: Obtain Certified Death Certificates

Every life insurance company will require at least one certified copy of the death certificate before processing a claim. Most insurers require the original certified copy with a raised seal — a photocopy will not be accepted.

In Montana, certified death certificates are issued by the Department of Public Health and Human Services (DPHHS) Office of Vital Records, as well as by local county registrars. The fee is $16 per certified copy.

Order more copies than you think you need. Beyond the life insurance claim, you will need certified copies for bank accounts, retirement accounts, vehicle title transfers, real estate transfers, and potentially other financial institutions. Ordering 8 to 10 certified copies early in the estate settlement process is standard advice for Montana estates of any complexity.

Step 4: Contact the Insurance Company and Request a Claim Form

Call the insurance company's claims department directly. Have the policy number ready. They will send you a claim form — also called a "death claim form" or "claimant's statement" — which you must complete and return along with the death certificate and any other documentation they request.

Documentation requirements vary by insurer but commonly include:

• Completed claim form (one per beneficiary)
• Certified copy of the death certificate
• Your government-issued photo ID
• The original policy document (if available — most insurers can proceed without it if you provide the policy number)
• For employer group policies: the group plan name, employer name, and HR contact information

If the death was accidental or occurred under unusual circumstances, the insurer may request an autopsy report, police report, or coroner's findings before releasing proceeds. This is standard practice and does not necessarily indicate the insurer is disputing the claim.

Step 5: Choose a Payment Option

Most insurers offer multiple payout options, and the claim form will ask you to select one:

• Lump sum: The full death benefit is paid in one payment. This is the most common option and gives you immediate access to the funds.
• Installment payments: The benefit is paid over a specified period (monthly, annually, etc.).
• Interest income option: The principal stays with the insurer and you receive periodic interest payments.
• Retained asset account: The insurer deposits the proceeds in an account in your name, from which you can draw by check.

For most beneficiaries dealing with immediate estate administration expenses, the lump sum is the practical choice. If the amount is substantial and you have concerns about financial management, speaking with a financial advisor before selecting an option can be worthwhile.

Step 6: Track the Timeline

Under Montana law and general insurance regulations, life insurance companies are required to process claims promptly. Most straightforward claims — where the cause of death is clear, the policy is in force, and the beneficiary documentation is complete — are paid within 30 days of receiving all required paperwork.

If a claim is delayed beyond 30 days without explanation, you can:

• Follow up in writing with the claims department requesting a status update and reason for delay
• File a complaint with the Montana Commissioner of Securities and Insurance at csimt.gov
• Consult an insurance attorney if the insurer is denying the claim without valid basis

Common reasons for delays include missing documents, questions about the cause of death if the policy was new, requests for additional medical records, or cleaner policy administration issues like a discrepancy in the beneficiary's name.

Life Insurance and Montana Estate Settlement: What Families Need to Know

Several facts about life insurance often surprise families during estate settlement:

Life insurance does not go through probate. If a living named beneficiary exists, the money bypasses the District Court entirely. This is one of the fastest and cleanest ways to receive funds during the estate settlement period.

Life insurance is not subject to Montana's creditor claims process. Because the proceeds pass outside probate, unsecured creditors of the decedent cannot reach life insurance paid to a named beneficiary. The exception is if the estate itself is the beneficiary.

Life insurance is generally not subject to Montana income tax or estate tax at the state level. At the federal level, life insurance proceeds are typically income-tax free to the beneficiary, though the proceeds may be included in the gross estate for federal estate tax purposes if the insured owned the policy.

Employer-provided life insurance may have a shorter window for filing claims. Some group policies require claims to be submitted within a specific period following the date of death. Check with the HR department or plan administrator to avoid missing a deadline.

If you are working through the full estate settlement process — bank accounts, real estate, vehicles, creditor claims, probate filings — the Montana Estate Settlement Guide provides the complete chronological sequence for settling a Montana estate, including when and how to handle non-probate assets like life insurance alongside probate property.

Unclaimed Life Insurance Policies

If you discover a life insurance policy years after the death, it may not be too late to collect. Under Montana's unclaimed property laws, unpaid life insurance proceeds escheated to the state Unclaimed Property Program managed by the Department of Revenue after a dormancy period. You can search for unclaimed property at mtrevenue.gov.

If the policy is recent and has not yet escheated, contact the insurer directly with the policy information and proof of death. Statute of limitations for life insurance claims is generally governed by the policy terms and can vary, but insurers are often required to investigate and pay valid claims regardless of when they are presented, as long as the policy was in force at the time of death.

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