How to guide
Why this matters
Most employers provide group life insurance worth 1 to 2 times annual salary at no cost to employees. This is easy to miss and often pays out within 30 days.
Step by step
- Contact the deceased's employer HR department. Tell them you are the beneficiary or the next of kin.
- Ask specifically about: group life insurance, supplemental life insurance, accidental death and dismemberment (AD&D), short and long term disability (which may include a death benefit), and any executive benefits.
- They will provide a beneficiary claim form and tell you the carrier name.
- Complete the claim form. Attach a certified death certificate.
- Submit to the carrier (often the employer's HR collects and submits for you).
- Track the claim. Most carriers pay within 30 to 60 days of receiving complete documentation.
- Also ask about: final paycheck, unused vacation, 401k or pension balance, COBRA continuation for health insurance, employee assistance program (EAP) bereavement support, and any executive bonus or deferred compensation owed.
Forms you will need
- Carrier beneficiary claim form
- Certified death certificate
State by state notes
Group life insurance is governed by ERISA (federal law). State rules generally do not affect the claim process.
Common mistakes to avoid
- Assuming there is no insurance. Most employers provide at least basic group life automatically.
- Missing supplemental coverage. Employees sometimes purchase additional coverage through payroll deduction.
- Forgetting AD&D, which can double the benefit if death was accidental.
- Not asking about all benefits owed: vacation, pension, deferred comp, etc.
What to do if you get stuck
If HR is unresponsive, escalate to the company's benefits administrator or, for very large companies, the benefits broker. Often a single email from the spouse gets immediate attention.
Frequently asked questions
How much is employer life insurance typically worth?
1 to 2 times annual salary for basic group coverage at no cost to the employee. Supplemental coverage purchased by the employee can be much higher.
How long does it take to pay?
Typically 30 to 60 days from filing complete documentation.
Is the payout taxable?
No, life insurance death benefits paid to a named beneficiary are generally tax free. Interest earned after death is taxable.
What other benefits might be owed?
Final paycheck, accrued vacation, 401k or pension, COBRA continuation, EAP bereavement support, AD&D, and any deferred compensation.
What if I do not know who the beneficiary is?
The employer HR can look up the designated beneficiary on file. If none is named, the policy typically defaults to the spouse, then to children, then to the estate.