How to Claim Life Insurance After a Death in the UK

Locating Policy Information and Notifying Insurers

Discovering the existence of a life insurance policy after someone has passed away can sometimes be challenging. The initial step involves diligently searching through the deceased’s personal documents, including financial statements, bank records, and any stored paperwork, which may contain policy details or correspondence from an insurer. Consulting with any financial advisors, solicitors, or accountants the deceased might have used can often reveal important information about their financial arrangements, including insurance policies.

If no physical documents or advisor contacts yield results, specialized services can assist in tracing lost or unknown policies. The Unclaimed Assets Register (UAR) provides a search facility for dormant or unclaimed assets, which can include life insurance policies. The My Lost Account service, supported by UK Finance, the Building Societies Association, and National Savings and Investments, also helps individuals trace lost accounts, including those potentially linked to insurance. These resources are useful when policy details are not immediately apparent.

Once a potential insurer is identified, make initial contact to inform them of the policyholder’s death. Provide basic identifying information about the deceased, such as their full name, date of birth, and date of death. Any known policy numbers will streamline the process. The insurer will then guide you on the formal steps required to initiate a claim.

Gathering Necessary Documents

Gathering the required documentation is a fundamental phase before formally submitting a life insurance claim. The official death certificate is universally required and serves as conclusive proof of the policyholder’s passing. In the UK, a death certificate is obtained from the General Register Office or a local register office after the death has been registered. Obtain several certified copies, as various organizations, including the life insurer, will require an original or certified copy.

Beyond the death certificate, the original life insurance policy document is typically requested by the insurer. This document contains the specific terms and conditions of the coverage and confirms policy ownership. If the original policy document cannot be located, inform the insurer immediately, as they have established procedures for lost documents, which may involve completing a lost policy declaration. Insurers also require proof of identity and address for the beneficiary, usually government-issued identification and a recent utility bill.

Gathering specific personal details about both the deceased and the beneficiary is essential for completing the claim forms. This information typically includes the deceased’s full name, date of birth, and exact date of death, along with the policy number. For the beneficiary, full name, current address, contact details, and banking information for the payout are necessary. Having all these details readily available streamlines the process of accurately completing the claim forms.

Submitting the Claim

After all necessary documents and information have been gathered, the formal submission of the life insurance claim begins. Insurers typically offer several avenues for claim submission, including secure online portals, traditional postal mail, or dedicated telephone lines where representatives can guide the process. Some insurers may also offer in-person appointments for complex cases.

When submitting through an online portal, beneficiaries will generally upload scanned copies of all required documents and complete digital claim forms. For postal submissions, all original or certified documents, along with the completed paper claim forms, should be sent via a traceable delivery service to ensure their safe arrival. If submitting via telephone, the insurer will usually guide the caller through the required information and advise on how to send supporting documentation. Precision in completing forms and providing accurate information is paramount.

Upon successful submission, the insurer will typically issue a claim reference number or an acknowledgement of receipt. This reference number is important for tracking the claim’s progress and for any future correspondence. Maintaining a record of this number and the date of submission is a prudent practice. The insurer will then begin their internal review process, verifying the submitted information and assessing the validity of the claim according to the policy terms.

Understanding the Payout

Once a life insurance claim has been successfully submitted and processed, the insurer will proceed with the payout. The typical processing time for a life insurance claim in the UK can vary, often ranging from a few days to several weeks, depending on the complexity of the case and the completeness of the submitted documentation. Factors such as missing information, the need for further investigations, or disputes among beneficiaries can cause delays in the payout timeline.

The payout is generally made directly to the designated beneficiary or beneficiaries. The most common method of payment is a direct bank transfer, providing a secure and swift way to receive the funds. In some instances, particularly if bank details are not provided or preferred, a cheque may be issued. The insurer will communicate the payout method and confirm the amount being disbursed.

Regarding tax implications in the UK, the lump sum paid out from a life insurance policy is generally free from income tax for the beneficiary. However, the proceeds of a life insurance policy can be subject to Inheritance Tax (IHT) as part of the deceased’s estate. This typically occurs if the policy was not written in trust, meaning the payout forms part of the deceased’s estate for IHT purposes. If the policy was placed in a trust, the payout is usually outside the deceased’s estate and therefore exempt from IHT, providing a tax-efficient way for beneficiaries to receive the funds.

Should any issues or disputes arise during the claim process, beneficiaries can first contact the insurer’s complaints department for resolution. If the issue remains unresolved, the Financial Ombudsman Service provides an independent and free service for resolving disputes between consumers and financial businesses.