If You're the Life Insurance Beneficiary of an AIG Policy, Here's What You Need to Do Next
If a family member or friend tells you they have made you the beneficiary on their AIG Life Insurance policy, you may be able to file a claim upon the death of the insured and receive the death benefit. The death benefit is paid to the beneficiary when it is determined that a valid claim has been made.
I'm Grieving and Suffering from Depression After a Loss. What Do I Do?
Following the death of someone who has named you as their life insurance beneficiary, thinking about filing a claim may be the last thing on your mind. It's normal to need some space so you can process your grief, and you should take time to work through the loss. You may feel depressed, hopeless, or even angry, depending on the circumstances surrounding the death.
Prioritizing tasks, like arranging the funeral or other memorializing services, dealing with personal effects, and spending time with others who are also processing their grief can help. If you're suffering from depression, you might want to consider seeking help from a professional. Once you take care of yourself, then you can take care of other matters such as submitting your claim as a beneficiary on the deceased's life insurance policy.
How Much Time Do I Have to Claim the Life Insurance Death Benefit?
There typically is no limit to file a claim for a death benefit. However, if your initial claim is denied, there may be time limits in which to dispute the denial. Once filed, insurers in most states have 30 days to review the claim before responding. Depending on what is listed on the death certificate, there may be an investigation into the circumstances surrounding the insured's death. While there is technically no time limit restricting the application or collection of life insurance benefits, it's recommended you do so as soon as possible.
The life insurance claims process will typically take 30-45 days to complete. Even if you were unable to locate the policy or didn't know your loved one had an AIG life insurance policy when they passed, you'll collect payment so long as:
- The policy was in effect;
- All premium payments were up to date: and
- The information provided on the life insurance policy is both accurate and truthful
What If My Life Insurance Claim is Rejected?
In some cases, claims against a life insurance benefit may be rejected, and the policy terminated. If this happens, the premiums that were paid in for the policy will usually be reimbursed to the deceased's estate, or in some cases to the beneficiary. Insurance policies typically have a contestability period that starts when the policy goes into effect and runs for two years after.
Approximately 20% of claims filed2 during the contestability period are rejected, after which the rate of claims rejection drops to 3% or less.
Reasons for rejecting claims generally fall into four categories:
- Suicide - If the deceased's cause of death is ruled a suicide, life insurance benefits often won't be paid out if the death occurred less than two full years after the policy was initially purchased.
- Homicide - If the cause of death is ruled a homicide, life insurance benefits will typically be withheld until the beneficiary is officially cleared from all wrongdoing. If a beneficiary is found guilty of homicide, the payout will go to a secondary recipient or revert to the estate.
- Fraud - If the deceased is found to have provided misleading information about their life risks when purchasing the policy — such as hiding the fact they regularly take part in base parachute jumping — life insurance benefits may be denied on the grounds of the risk not being disclosed and subsequently not factored into the insurance policy premiums.
- Non-Accidental Death - An accidental life insurance policy will only pay out if the policyholder's death is ruled accidental. In this case, a natural death, death by suicide, or death by homicide would be grounds to reject a claim.
The life insurance claims process can be delayed or terminated based on any of the above circumstances.
Should You File a Claim as a Life Insurance Beneficiary?
If you believe you are the beneficiary of a life insurance policy and the insured has passed away, or if you have questions about how to file a claim with American General Life we are here to help. Contact us at 1-800-888-2452.
If you are interested in finding out more about life insurance policy options, please visit our online calculator for a free, no-wait quote.