How long does it take to start collecting life insurance?

 How long does it take to start collecting life insurance

start collecting life insurance
 How long does it take to start collecting life insurance?


When a person takes life insurance, he thinks about protecting himself and his family. These types of policies provide the necessary financial support so that the bearer or, if necessary, beneficiaries can continue their daily lives in cases of death, disability or dependency, among other cases.

As a general rule and in accordance with the Insurance Contracts Act, when an event occurs leading to the collection of insured capital in the policy, the insurance company must be notified of the event within a maximum of 7 days from the date of this occurring. However, it is always recommended to review the general terms of the contract to make sure that it does not specify a different period.


Furthermore, the rule governing the insurance sector also states that "the policyholder or insured must also provide the insured with all kinds of information about the circumstances and consequences of the loss. In the event of a violation of this duty, the loss of the right to compensation will only occur in the event of intent or gross negligence."


Time taken to collect life insurance fees

In many cases, a 7-day period for reporting the event to the insurance company is insufficient if, for example, all steps to be taken in the event of the death of a relative are taken into account. In the face of this situation and provided that the beneficiaries do not act in bad faith, the time is extended.

If there is no reliable evidence that the deceased was the owner of life insurance, it is necessary to verify this by going to the register of insurance contracts and death coverage, where they will issue a certificate containing the insurance that the deceased has insured. This procedure must be performed 15 days after death, and therefore it is necessary to submit a form 790, in addition to the document proving the death of the insurance holder.


When it is established that the deceased already had life insurance, the insurance company, after receiving a death notice, will explain the steps to be followed so that the beneficiaries can receive compensation. However, there is a legal statute of limitations of 5 years to claim personal insurance, such as life insurance. After this period has elapsed since the death of the insured without the family claiming capital, the company is not obliged to address the issue.


Once the necessary steps have been taken, the time taken to collect the life insurance policy cannot exceed 40 days in accordance with the Insurance Contract Act: "The insured is obliged to pay compensation at the end of investigations and the necessary expert opinions of the existence of the claim and, if necessary, the amount of damages resulting from it. In all cases, within forty days of receiving the claim declaration, the insurance company must pay the minimum amount that the insurer may owe, in accordance with the circumstances known to him."


Despite what the regulations specify, it is always advisable to contact the insurance company to find out how long it will take to collect life insurance. The same procedure must be performed if there is any violation or if there is a delay in payment.insurance