When does a term life insurance policy pay out and how long does it usually take?
- Term life insurance is a popular part of long-term financial planning. To effectively incorporate a term life insurance policy into your financial portfolio, you must understand how and when term life insurance payouts are delivered to beneficiaries. This includes understanding how quickly benefits will be paid and designing a policy with the payout option that works best for your financial planning.
- Typically, term life insurance benefits are paid when the insured has died and the beneficiary files a death claim with the insurance company. Many states allow insurers 30 days to review the claim after receiving a certified copy of the death certificate. Then insurers can payout benefits, deny the claim, or ask for additional information to process the claim.
- The default payout option of most term life policies remains a lump sum check. You should work with your insurance agent to determine which payout option would best for your situation since the type of insurance policy you own can affect the payout process.
How to learn more about life insurance
Life insurance may seem complicated, but it’s not that hard once you know the basics. Of course, we are happy to help. You can also use the TruStage Life Insurance Calculator to compare different types of insurance and learn more about your options.
What is life insurance?
A life insurance policy is a contract with an insurance company. Learn about the different types of life insurance policies and how life insurance works.
How much life insurance do you need?
This article walks you through several popular methods for estimating how much life insurance you need to ensure your family’s future.
Introduction to life insurance
In this article you will learn about basic life insurance so you can make a more informed decision about how to protect your family's financial security.