Have you ever wondered? What is the average life insurance payout? How much will your loved ones likely be paid if they ever claim on your insurance life policy?
The answer is around $600,000. This figure is the average purchased face amount of a term life insurance policy. Consequently, it is the average amount insurance firms pay when claims are made against life insurance policies.
However, this number is just an average. That is to say, even though most people get paid this amount, many get paid less, and still, others get paid more. Ultimately, the amount your beneficiaries receive depends on the coverage amount you opted for when you signed up for the policy.
How Long Does It Take to Get a Life Insurance Payout?
Usually, it doesn’t take a long time to get the payout. Most insurers make a life insurance payout within 24 hours of receiving and confirming the death claim.
How Do You Make a Life Insurance Claim?
When an insured person dies, their lawyer, beneficiary, or relative will fill out a death claim form. Subsequently, they will forward this form to the deceased’s insurance provider. Upon receiving the form, the firm will reach out to the policy’s beneficiaries to confirm the death claim. Once this is done, and depending on the insured’s preference, the insurer will either pay one lump sum to a single beneficiary or different amounts to multiple beneficiaries
Factors That Influence Life Insurance Payout
Usually, life insurance payouts proceed smoothly and without hassles. This is especially true if the insured’s beneficiary information is current. However, certain factors can cause a delay. These include:
- Suspicion of Foul PlayIf an insured person dies within a short time after taking a life insurance policy, the insurer might suspect foul play. Then, they will investigate to confirm whether their suspicions are right or not. This investigation will involve sifting through the insured’s medical information to ensure nothing is amiss.
- Outdated Beneficiary Information: Another scenario where there might be a delay in a life insurance payout is if the beneficiary’s contact information is outdated or if the beneficiary cannot be located. To prevent this, ensure you update your beneficiary information regularly. Also, ensure you have contingent beneficiaries in the event you outlive your primary recipients.
How to Determine the Right Life Insurance Policy for Your Loved Ones?
Throughout this article, you have probably wondered: how do I choose the best life insurance coverage? The answer is simple: figure out the amount of life insurance coverage you need for your loved ones. Ask yourself what their needs are and what financial responsibilities they will face if you die.
For instance, how much will your loved ones lose income-wise in the worst-case scenario? Is there a mortgage they will have to keep paying? What about your children’s education?
Ask questions like these to get a reasonable estimate of how much coverage would be required to meet your loved one’s needs. Then, choose the appropriate amount based on that information. This way, you will ensure your beneficiaries are not caught unawares and have everything they will need if the unexpected happens.
Would you like to ensure a hassle-free future for your loved ones even if you lose your life unexpectedly? Contact us at Randy Jones Insurance today to get started on your customized life insurance policy.