The details of each life insurance policy are different. That said, all policies have several factors in common across the board. Sometimes, life insurance beneficiaries aren’t aware of how life insurance hold’s policy works until the unfortunate event of the individual’s passing. If you are a beneficiary of a life insurance policy in Dallas TX and beyond, here are three common policy factors you may not know about. Read on to stay informed in case you find yourself having to fill out a claim on a State Insurance Solutions life policy.
1. Payouts May Be Delayed If The Policy Is New
Did you know that if a life insurance policy is only one to two years old at the time of a holder’s passing, the insurance provider may investigate the claim?
This investigation will likely delay the payout. Typically, life insurance providers in Dallas, TX and beyond payout within one to two months of claim submission. If the policy is relatively new, however, the payment may be delayed up to a year.
The insurance provider may ask for additional documentation aside from the holder’s death certificate. This way, the company can investigate the possibility of fraud.
2. Insurance Providers May Be Subject To Interest Payments If Benefits Are Prolonged
Did you know that the policy holder’s insurance provider is subject to interest on payouts if they are prolonged?
From the time a life insurance claim is received to the day it is paid out, a certain percentage of interest accumulates. the interest percentage is based on the policy terms. Once the payout is sent, the provider must include the interest along with it. this benefits you as the beneficiary in the long run. Although, waiting for a payout may cause you undue hardship immediately after your loved one’s passing.
3. Benefits Are Not Paid Out In Cases Of Suicide
If the holder of a policy commits suicide, benefits are typically withheld. This term is explicit in all life insurance policies.
In cases of murder or any other fraud, a policy payout is withheld as well. This is especially true if the beneficiary is a suspect in the crime against the policyholder.
How Well Do You Know Your Policy?
Whether you’re a beneficiary of a policy or a holder yourself, how familiar are you with the terms of your life insurance?
If you’re still shopping around for favorable life policy for yourself, contact our friendly agents at State Insurance Solutions for a quote. We are eager to help you find a policy that works best for you.