When Does a Term Life Insurance Policy Payout a Death Claim?

Typically, a term insurance policy benefits are paid when the insured has died, and the beneficiary files a death claim with the insurance company, submitting a certified copy of the death certificate.

Many states allow life insurers 30 days to review the claim. Then they can pay it, deny it or ask for additional information.

Most life insurance companies pay out benefits within 30 to 60 days of the date of the death claim.

There is no set time frame but insurance companies are motivated to pay as soon as possible, after receiving bona fide proof of death, to avoid steep interest charges for delaying payment of claims. 

Learn more about when a term life insurance policy pays.