How a non contestable claim should be paid

[WinoBlues]

I received the completed paperwork on Friday and snail mailed it that day. Normally we Priority mail, however, this got sent out in a regular envelope in error. The claim was paid and mailed on Tuesday. They had not chosen to have it overnighted otherwise they would have the checks today. At the company one to two business days tops.

That is how a non contestable claim should be paid.

All IMohsoHO

 

[adjusterjack]

Gotta love technology.

In the old days, two to four weeks was the norm for a death claim that wasn't contestable.

 

[WinoBlues]

Gotta love technology.

In the old days, two to four weeks was the norm for a death claim that wasn't contestable.

Still the norm with some of the huge Life companies. This is a small company that has always, last 20 plus years, been fast on turnaround.

 

[Robert Barney]

What was the face amount / death benefit?

Sometimes re-insurers can slow things down.

 

[Life Hawk]

I received the completed paperwork on Friday and snail mailed it that day. Normally we Priority mail, however, this got sent out in a regular envelope in error. The claim was paid and mailed on Tuesday. They had not chosen to have it overnighted otherwise they would have the checks today. At the company one to two business days tops.

That is how a non contestable claim should be paid.

All IMohsoHO

How did you secure a Death Cert. so fast... my last one took almost a week?

 

[WinoBlues]

What was the face amount / death benefit?

Sometimes re-insurers can slow things down.

That could be as well. This was a small "FE" (if I sold FE) policy $25,000.

 

[WinoBlues]

How did you secure a Death Cert. so fast... my last one took almost a week?

No, this was after they got the DC. That did take a week or two. I recived the paperwork from the Benes on Friday morning, mailed it Friday evening and the company paid and mail the check on Tuesday.

That said, This company has paid on a Notification of Death from the funeral home. My mother died on a Sunday, Monday we faxed the paperwork from the FH and we both had checks in hand by 10AM Tuesday.

Not saying anyone company does not process quickly but some companies will tell you it is a 21 day turn around from the time they log the claim paperwork into the system.

SNL also seems to be quick on non contestable claims. Not the same case with contestable claims as they only have one person that works those.

 

[Robert Barney]

That could be as well. This was a small "FE" (if I sold FE) policy $25,000.

I can't imagine that the $25,000 was re-insured, which means the company that issued the policy was the one making the decision.

When a re-insurer is involved it will be both the issuing company and re-insurer who will make the decision, and re-insurers (once removed from the customer) don't have the same concern about holding up the works.

The whole notion of FE is to have money to pay something like a funeral. Can't imagine how the beneficiary would feel if they had to tell the funeral home, "Sorry, we haven't got the check from the life insurance company yet."

 

[Newby]

I can't imagine that the $25,000 was re-insured, which means the company that issued the policy was the one making the decision.

When a re-insurer is involved it will be both the issuing company and re-insurer who will make the decision, and re-insurers (once removed from the customer) don't have the same concern about holding up the works.

The whole notion of FE is to have money to pay something like a funeral. Can't imagine how the beneficiary would feel if they had to tell the funeral home, "Sorry, we haven't got the check from the life insurance company yet."

Funeral homes don’t worry about that stuff like agents do. They just use assignment companies. As long as the policy is over 24 months old they can get all their money within a few hours they don’t need any death certificates or anything. Doesn’t matter who the insurance company is. The days of funeral homes waiting around for insurance companies to pay claims ended over a decade ago.

 

[WinoBlues]

Funeral homes don’t worry about that stuff like agents do. They just use assignment companies. As long as the policy is over 24 months old they can get all their money within a few hours they don’t need any death certificates or anything. Doesn’t matter who the insurance company is. The days of funeral homes waiting around for insurance companies to pay claims ended over a decade ago.

I was hoping you would answer.

Is a company that also does PreNeed more apt to take a notification of death from a FH or take an assignment?