Hopefully we all have some type of life insurance. Families are devastated after an unexpected death, and the last thing they want to worry about is bills that can’t be paid. Even if the death is expected, people still don’t need the extra worry about bills. This is why everyone should have life insurance.

When that terrible day comes, you will have to file a claim. Some of the information that you will need is; the deceased full name, date of birth, policy number, the date of death and the cause of death. The person reporting the death will have to be identified and what relationship that person is to the deceased. You will have to give them information where you can be reached. After you have reported the death, you will have to send them certified copies of the death certificate. These have to be submitted with the insurance claim.

If everything goes smoothly, you should receive a settlement within a short period of time, depending on the insurance company. It usually happens within two weeks. Some of the options for getting your settlement include, a lump sum, which most people want. You could get the interest income, where the insurance company can hold your money and pay interest on it. This is good if you do not need the money right away. Some insurance companies can put your money in money market fund accounts. You also have a life income option similar to an annuity. This guarantees you money for life.

There are some instances when you will not get your settlement so quickly. If the circumstances of the death are questionable (possibility of murder or suicide) then the settlement will be delayed. Insurance companies, if they have reasons to believe that the insurance claim will be contested have the option of waiting two years to pay your settlement. There are also insurance companies that are not as reputable. These insurance companies come up with any excuse to delay your settlement, in part, to keep the money in their control as long as possible. So research thoroughly your many insurance company options.