How Long Does a Beneficiary Have to Claim Life Insurance After Death?
When a family loses a loved one, dealing with the financial and legal aftermath can feel overwhelming. Grief, logistical challenges, estate matters, funeral arrangements, and family transitions take priority—leaving many beneficiaries unsure of what steps to take with a loved one’s life insurance policy. In many cases, beneficiaries do not even know a policy exists until months or even years later. When this happens, the natural question arises: How long does a beneficiary have to claim life insurance benefits after death?
The answer is more reassuring than most people expect. While many deadlines apply to disputing a denial or filing a lawsuit, there is generally no strict time limit to file an initial claim for life insurance benefits. Here’s what you need to know.
Is There a Time Limit to Collect Life Insurance?
In most cases, no, there is no absolute legal deadline that prevents a beneficiary from filing a valid life insurance claim. Life insurance policies typically contain a clause stating that claims should be submitted “within a reasonable time” or “as soon as reasonably possible,” but this does not function as a hard cut-off.
Insurance companies understand that beneficiaries may face obstacles that prevent prompt filing, including not knowing they were named on the policy or not being aware the policy exists at all. Courts also recognize these realities and may allow claims to be filed outside the time stated in a policy, especially when a beneficiary has a valid reason for the delay.
Common valid reasons include:
Not knowing the policy existed
Not knowing the insurance company’s identity
Miscommunication or misinformation from the insurer
Filing delays due to grief or estate complications
Lack of access to the policy documents
In many of these situations, insurance companies must still review the claim—even if substantial time has passed.
Why Do Beneficiaries Delay Filing a Life Insurance Claim?
There are several reasons why beneficiaries fail to file a claim promptly. Many of these reasons are legitimate, understandable, and legally recognized.
1. They Don’t Know Which Insurance Company Issued the Policy
This is one of the most common situations. A beneficiary may know a policy exists but not know:
The insurance company’s name
The policy number
Whether the policy was still active at the time of death
In these cases, the best approach is to gather clues. You may be able to find information by:
Searching the deceased’s bank or credit card statements for premium payments
Going through the decedent’s home mail or email correspondence
Calling the decedent’s former employers (if group coverage may exist)
Checking safe deposit boxes, files, or digital records
Contacting major life insurance companies with the decedent’s personal information
Many beneficiaries discover group life insurance policies through an employer or union—coverage they did not even know existed.
2. They Don’t Know They Were Named as a Beneficiary
Not everyone is informed of their beneficiary status. Some insured individuals prefer privacy; others simply forget to mention it. Also:
Contingent beneficiaries often do not know they are next in line
Primary beneficiaries who died before the insured may trigger contingent rights
Divorce decrees may require keeping an ex-spouse as a beneficiary
Without the insured communicating their intentions, the beneficiary may discover the policy only by accident—or after someone else alerts them.
3. They Don’t Know a Policy Existed at All
Many unclaimed life insurance policies exist simply because no one knew the policyholder had purchased coverage.
Historically, insurers were not required to notify beneficiaries or check public death databases to identify deceased policyholders. As a result, billions of dollars in benefits have gone unpaid.
Today, many states require life insurers to periodically check the Social Security Administration’s Death Master File (DMF) to identify deceased policyholders whose beneficiaries may still need to be located. Still, many policies slip through the cracks.
4. They Were Incorrectly Told Not to File a Claim
This happens more frequently than people realize. A beneficiary may call the insurance company for claim forms and, based on a misunderstanding of the facts, an employee may tell them:
“You’re not eligible to file a claim.”
“Your rights as an ex-spouse were revoked.”
“The policy lapsed, so there’s no point filing.”
“There is no active policy for this person.”
“Someone else is the beneficiary.”
Many of these statements are wrong. For example:
Some states do not automatically revoke ex-spouses as beneficiaries.
Divorce decrees may require maintaining an ex-spouse as a beneficiary.
Federal ERISA laws often override state laws.
Policies believed to be “lapsed” may still have coverage via grace periods or reinstatement rules.
If you were told not to file a claim, you should always consult a life insurance attorney.
What Happens If You Don’t Claim Life Insurance Benefits?
If a beneficiary never files a claim, life insurance benefits do not disappear—but they also do not automatically get paid.
Here is what typically happens:
1. The insurer eventually declares the benefits “unclaimed.”
This usually occurs after the insurer has made reasonable efforts to contact beneficiaries or check death records.
2. The funds are turned over to the state’s Unclaimed Property Office.
Every state maintains an unclaimed property database where unpaid life insurance benefits are held until the rightful beneficiary steps forward.
3. The beneficiary must then contact the state to claim the funds.
This process can be time-consuming and requires proof of identity and, in some cases, estate documents.
While this system ensures the funds are not lost forever, it is far easier to claim directly from the insurer before funds are transferred to a state.
Important: Deadlines Do Apply to Denied Claims
While there is generally no strict deadline to file a life insurance claim, there are deadlines for:
Appealing a denied claim
Suing an insurance company after a denial
These deadlines are governed by state statutes of limitations or, in the case of employer-provided (ERISA) policies, federal deadlines.
Missing these deadlines can permanently end your right to recover benefits.
This is why beneficiaries who receive a denial letter should contact a life insurance attorney immediately.
Our Life Insurance Lawyers Can Help
Our firm has extensive experience handling:
Delayed claims
Denied claims
Unclaimed life insurance benefits
Claims involving ex-spouses
Claims governed by ERISA
Beneficiary disputes
Lapsed policy disputes
Claims involving misrepresentation or contestability
We understand how insurers operate and know how to succeed in cases where beneficiaries discovered the policy late or were told not to file.
We work on a contingency fee basis — you pay nothing unless we win.
Get a Free Consultation
If you are unsure about your rights as a beneficiary or need help with a delayed or denied life insurance claim, our attorneys can assist you.
📞 Call (888) 510-2212 for a free consultation.
We will evaluate your case and help you recover the benefits you are owed.
