Making a mortgage protection claim

First week

• Order several certified copies of the death certificate — insurers and financial institutions each need one, and copies take time to obtain later
• Locate the policy or the declarations page; the insurer's claims number is on it
• Call the insurer and open the claim
• Call the mortgage servicer and tell them what has happened — do not simply stop paying
• Don't cancel any other insurance or accounts yet

Talking to the servicer

The mortgage doesn't pause because a claim is in progress. Payments continue to be due, and missed payments can start the clock on serious consequences.

Servicers generally have processes for a borrower's death, and options may exist while an estate is settled. Ask what they are, in writing, and keep paying if you're able to.

What the insurer will need

• A completed claim form from each beneficiary
• A certified death certificate
• The policy number, and the policy document if you have it
• Identification for the beneficiary
• Sometimes an attending physician's statement or additional records

If the death is within the contestability period

Where a death occurs within the contestability period after issue, insurers routinely review the original application against medical records before paying. This adds time and is standard practice rather than a sign of trouble.

Respond to requests promptly, and keep a record of every call — date, name, and what was said.

Choosing how to receive it

You'll usually be offered a lump sum or an account held by the insurer that pays interest. The death benefit itself is generally not subject to income tax; interest paid on it generally is.

Take time over larger decisions. There's rarely a reason to decide quickly, and there are good reasons not to.

If a claim is delayed or denied

Ask for the reason in writing. If you disagree with it, your state insurance department accepts complaints and reviews them at no cost to you.