What Happens When You File a Life Insurance Claim

Losing a loved one is never easy, but for military families, the loss often comes with unique challenges. Whether it’s navigating benefits while stationed far from home, managing paperwork during deployment, or dealing with the emotional toll of a service-related death. 

Life insurance can provide financial stability in situations like these, helping families cover immediate expenses and replace lost income. However, understanding the steps to file a claim can feel overwhelming during such a difficult time. 

Keep reading as we’ll guide you through the process, outlining what documents you’ll need, how to contact your insurer, and what to expect along the way.

How to File a Life Insurance Claim

If you’re unfortunate enough to need to file a life insurance claim, follow these steps to ensure the process is as smooth as possible.

1. Contact Your Life Insurance Company

The very first thing you’ll need to do is contact the insurance company that issued the policy. That could be Servicemembers’ Group Life Insurance (SGLI), Veterans Group Life Insurance (VGLI), or a private insurer. 

If your family has worked with a specific insurance representative, you can contact them directly. Otherwise, call the customer service number on your policy. They will guide you through the entire process so you know what to expect.

2. Collect Certified Copies of the Death Certificate

To process the life insurance claim, your insurance company will require you to submit a certified copy of the death certificate. You cannot use a photocopy. You can obtain certified copies of the death certificate from your local health department or request copies from the funeral director where the services will take place. 

3. Choose How to Receive The Death Benefit

Most insurers provide various payout options for death benefits. Here’s a brief overview of each.

• Lump sum: You’ll get the full death benefit in a single lump sum. This option is good for people who are comfortable managing their finances or have a financial advisor to assist them.
• Life income annuity: You will get fixed monthly payments for your lifetime. The insurer will consider the beneficiary’s life expectancy to calculate the benefit amount.
• Specific income annuity: Beneficiaries can receive fixed payments over a particular number of years, such as 10 or 15. The insurer divides the total benefit amount by the number of payments to determine the payment amount.
• Interest Payments: If you don’t need the death benefit and are unsure how you want it paid out, your insurer can keep it in an interest-bearing account. You will then receive interest payments until you’re ready to receive the entire benefit.   

4. Complete The Life Insurance Claim Form

You can fill out the claim form online, depending on the insurance company. However, some may require a paper copy instead. While each claim form varies, many still need the same information. You want to include the following:

• Life insurance policy number
• Description of the cause of death
• The insured’s Social Security number
• Name, Social Security number, and address of the beneficiary
• Location where the death benefit payment should be sent

Please check the information multiple times before submitting it. Any errors could delay the benefit’s payment. Once the form is ready, you can submit it with the certified death certificate.

5. Receive The Death Benefit Amount

Once your life insurance claim is approved and you’ve chosen how to receive the funds, the insurer will start the payout process. Note: One of the best aspects of getting a life insurance policy is that it is listed as tax-free income for its recipients.

Military Life Insurance Claims: What’s Different About SGLI, FSGLI, and VGLI

Most people with life insurance have actively sought coverage to protect their families. However, things are a bit different for military families. Many beneficiaries don’t even realize there was a policy until after their loved one has passed. This is because SGLI (and FSGLI) is automatically provided for active duty members and reservists unless they decline it.

Where To File The Claim 

The type of military life insurance you have will impact where you file your claim.

• SGLI: If a service member dies while on active duty, the Casualty Assistance Office in their branch will help coordinate the claim. The beneficiary must complete SGLV?8283 (SGLI) or SGLV?8283A (FSGLI) and submit it to the Office of Servicemembers Group Life Insurance (OSGLI). You will also need to provide a certified death certificate, and the military branch will supply a casualty report. However, if you are no longer on active duty and not covered by VGLI, you must provide DD?214 or NGB?22 separation documents.
• VGLI: Beneficiaries of any Veteran must file using SGLV?8283 and send it by mail to the address below or fax it to OSGLI at 877-832-4943. You will also need to provide a certified copy of the death certificate, and you may be required to submit a copy of the VGLI conversion notice. 

Office of Servicemembers’ Group Life Insurance (OSGLI):

PO Box 70173
Philadelphia, PA 19176-9912

When to Expect the Death Benefit

Many beneficiaries ask, “When should I expect to receive the military death benefit?” This can be important, especially if the money is needed immediately.

The process can move quickly if everything is filled out and filed correctly. Most people will receive benefit payments within 30 to 60 days after filing all required documents. However, some insurers are known to provide a portion of the benefit payment upfront if there’s an immediate need.

Unfortunately, not all claims go as smoothly as you’d like. If death occurs within the first two years of the policy starting, the insurer may investigate the cause of death. Most policies also include a suicide clause, allowing the insurer to contest the benefit if the insured commits suicide within the first two years.

Coordinating Military Survivor Benefits

Besides life insurance, there are several other military survivor benefits available to families who have lost a loved one in service. Here are a few you should know.

• Dependency and Indemnity Compensation (DIC): This is a monthly, tax-free benefit provided by the U.S. Department of Veterans Affairs (VA) to the surviving spouse, children, or parents of a service member or Veteran who has died. It may have been while on active military duty or due to a service-connected injury or illness. You can mail in VA Form 21P-534EZ or apply online through VA.com.
• Survivor Benefit Plan (SBP): This is a Department of Defense (DoD) program that provides ongoing monthly income to the surviving spouse or other eligible beneficiaries of a military retiree after the retiree passes away. Think of this as retirement income insurance. When the servicemember retires, they can enroll in an SBP policy and pay the monthly premiums deducted from their retirement pay. If the retiree dies, their beneficiary receives up to 55% of the retiree’s base retirement pay for the rest of their life.
• Death Gratuity: The Death Gratuity is a single, tax-free payment of $100,000 that the DoD provides to the next of kin of a military service member who passes away while on active duty or under certain qualifying circumstances. 

Each of these is an excellent government-provided benefit that supports beneficiaries when a servicemember dies. However, some families might not have enough on their own. A military life insurance policy can also provide financial peace of mind.

If the Death Occurred During Active Duty

If the death occurs during active duty, families have more to handle, which can make a difficult time even harder.

When a death occurs, a Casualty Notification is usually conducted by a Casualty Assistance Calls Officer (CACO) in the Navy and Marine Corps or by a Casualty Notification Officer (CNO) in the Army and Air Force.

After the notification, Casualty Assistance generally begins. The CACO or CNO will coordinate with the funeral home to assist with funeral arrangements. They will also start working with the family on death benefits (SGLI, Death Gratuity, etc.).

Preparing in Advance

One of the most uncomfortable and overlooked conversations for families is talking about death. However, this is a discussion that all military families should have. It helps the family stay united about their wishes.

Once you have the conversation and your plans are in place (insurance, death benefits, etc.), make sure all the documents are stored in a safe location where anyone in the family can access them if necessary. This will help the process go smoothly if something were ever to happen.

Moving Forward: Support and Resources for Military Families

Losing a loved one in the military brings intense grief and complicated logistics. Knowing how to file a life insurance claim, access survivor benefits, and handle paperwork can make this challenging time easier.

Remember, you are not alone. Organizations like Tragedy Assistance Program for Survivors (TAPS) and Military OneSource provide grief counseling, peer support, and resources for military families. Whether preparing ahead of time or dealing with a recent loss, having a clear plan and support systems can make a significant difference.