Assisting Beneficiaries: Tips for Handling Claim Paperwork

[Roxane Fischer]

Hello,
A few weeks ago, some beneficiaries (to whom I sold a life insurance policy to their father a few years ago) came back to me complaining about the difficulty of gathering paperwork for their claims. They are potential future clients, but it took me a lot of time to assist them.
Have you ever encountered the same problem, and is it worth helping in such cases? Any tips or tools you could give me to better handle this kind of situation in the future?
Thanks

 

[fed up]

Not sure I understand. A life claim needs a death certificate, social security numbers of deceased and claimants, and current addresses along with policy documents.

 

[CasualT]

Create a folder on your laptop or desktop labeled Claims Forms. Store the death claims pdf from all the carriers you're contracted with that make that form available to agents. Most of them also have detailed instructions on who to process the claim.

 

[Roxane Fischer]

Yes but they were many beneficiaries to keep in the loop. I am thinking about some tool that i could find on the cloud that I could use to keep track of everything (+ add the death claims), and handle to the family so they coordinate. Do you have one in mind? Not 100% sure about what would be best to use

 

[CasualT]

Yes but they were many beneficiaries to keep in the loop. I am thinking about some tool that i could find on the cloud that I could use to keep track of everything (+ add the death claims), and handle to the family so they coordinate. Do you have one in mind? Not 100% sure about what would be best to use

For uncontestable death claims there are not that many moving parts. You may be making unneeded busy work for yourself.

For contested death claims the life insurance company is going to tell the family what they need to continue processing. It is on THEM to comply and give what is needed. If there are multiple beneficiaries at best I would create a group email so they all read the same thing and I'm not repeating myself.

 

[DHK]

Have you ever encountered the same problem, and is it worth helping in such cases?

Mehdi Fakharzadeh (passed away) often told his story of helping someone (not a client) complete their beneficiary claim forms. he did it for the right reasons - to be helpful. He also received over 20 referrals as a result.

Do it for the right reasons, but you never know what could happen by helping a potential client when they need help the most.

 

[Roxane Fischer]

Actually I am thinking about a centralisation software that would help beneficiaries handle most the succession, share documents between them, have applications status between different life policies etc... do you think it would be useful? I feel it as a huge pain point but am not sure what would be most needed first

 

[jdeasy]

Hello,
A few weeks ago, some beneficiaries (to whom I sold a life insurance policy to their father a few years ago) came back to me complaining about the difficulty of gathering paperwork for their claims. They are potential future clients, but it took me a lot of time to assist them.
Have you ever encountered the same problem, and is it worth helping in such cases? Any tips or tools you could give me to better handle this kind of situation in the future?
Thanks

I help everyone that asks me for assistance with a claim. Mostly they are for policies I've written but sometimes not. I don't find it particularly difficult. And usually the company is glad someone is helping. It's one set of paperwork. If there's more than one beneficiary, make a copy for each. Some companies require a copy of the beneficiary ID. Not all do. Some companies still require an original death certificate. Not all do that. Many now will accept a copy.

Most funeral homes are glad that someone is helping along the claim. Although some get very butthurt about it.

It will certainly lead to business down the road for you. Not with just them, with others that tell how you helped them.

 

[Life Hawk]

Yes but they were many beneficiaries to keep in the loop.

I always seek as few beni's in a sale as I can get away with. Too many can/will cause issues down the road. I would suggest finding a way of mass communicating in this setting. Text or e-mail. Money as a weird effect on folks and you want to make sure that what you say to one, you say to all (those who have a legal interest in the information). Contingent beneficiaries do not!

 

[Allen Trent]

Actually I am thinking about a centralization software that would help beneficiaries handle most the succession, share documents between them, have applications status between different life policies etc... do you think it would be useful? I feel it as a huge pain point but am not sure what would be most needed first

Not sure I fully understand. If the beneficiaries are clearly identified, cant they each file their own claim for their own share & not be held up by other beneficiaries not completing their claim form? Death certificate would only be needed once. Then, many carriers allow separate claim form for each beneficiary & each beneficiary gets to choose their own settlement option choice (more common in annuity), but lump sum, Payout annuity can be used in Life policy claim separately for each beneficiary.

where it gets more complicated to me is when beneficiaries have not been updated & maybe Primary spouse is deceased or 1 or more of contingents are deceased. You have to get copies of death certificate of primary so that it can flow to contingent. If any of contingent are deceased, might need some proof of who the deceased contingents' "heirs" are if policy is per stirpes. that can get much more difficult.