Claiming on Life Insurance After a Death

A life insurance payout can make a genuine difference at a difficult financial time, but many families aren't sure whether a policy exists, let alone how to claim it. Here's how the process generally works in the UK.

Finding a Policy

Life insurance turns up in more places than people expect. Worth checking:

• Personal paperwork, policy documents, annual statements, filing cabinets
• Bank statements, for regular payments to an insurance company
• Their employer, for a death-in-service benefit (often 2 to 4 times annual salary)
• The mortgage lender, many mortgages come with linked life cover
• A financial adviser, if they used one, who will have records of any policy they arranged

If you still can't find anything but suspect a policy exists, the Association of British Insurers runs an unclaimed assets service that can help trace lost policies.

The One Distinction That Changes Everything: Written in Trust, or Not

This is the single most important thing to establish early, because it changes the timeline dramatically.

• Written in trust: the payout goes directly to the named beneficiaries, bypassing the estate and probate entirely. Trust claims are often settled within days to a couple of weeks.
• Not written in trust: the payout is treated as part of the estate. If the estate needs probate, the insurer generally won't release the money until a Grant of Probate is issued, which can take several months.

If you're not sure which applies, the policy document should say, or the insurer can confirm it when you call.

Making the Claim

Contact the insurer's bereavement or claims team, the number is usually on the policy document or the insurer's website. You'll typically need:

• A certified copy of the death certificate (it's worth ordering a few extra copies when you register the death, since several organisations will ask for one)
• The policy number or document, though insurers can usually look a policy up by name and date of birth if you don't have it
• Proof of your identity and relationship to the person
• A Grant of Probate, only if the policy wasn't written in trust and the estate requires one

The insurer sends a claim form, which you complete and return with the supporting documents.

How Long It Takes

Straightforward trust claims can complete in as little as 5 to 10 working days. Estate claims (no trust) typically take 4 to 8 weeks once probate is sorted, though older policies or unusual causes of death sometimes need extra investigation, which can extend this further. The vast majority of claims, over 97%, are paid out without issue, the most common reason for a claim to be challenged is undisclosed health information from when the policy was first taken out.

Frequently Asked Questions

What if I don't know who the insurer is?

Check bank statements for regular payments, ask their employer about a death-in-service benefit, or contact the Association of British Insurers, who can help search for unclaimed policies.

Does this cover home, car, or travel insurance too?

No, life insurance is separate from other kinds of cover. Buildings, contents, motor, and travel insurance each have their own bereavement claims process, you'll need to contact each provider individually.

Can an unmarried partner claim if they're not named on the policy?

Not automatically. If the policy has no trust and doesn't name a partner as beneficiary, they have no automatic right to the proceeds and may need specialist legal advice.

Is the payout subject to Inheritance Tax?

If the policy is written in trust, the payout generally sits outside the estate for Inheritance Tax purposes. If it isn't in trust, it usually forms part of the estate and may be counted when working out any tax due.

Related reading: Notifying an Employer or Pension Provider After a Death · Notifying the Bank and Building Society After a Death