A Guide for Beneficiaries
Has someone in your life named you a beneficiary for their life insurance policy? Farm Bureau Insurance of Tennessee is proud to offer life insurance policies that can help your family maintain their financial stability, even after a death in the family. To this day, our agents still hand-deliver benefit checks as a show of care during a difficult time.
If you are a beneficiary of a loved one’s life insurance policy, we hope it brings you peace of mind knowing that they have a plan to secure your financial future. But you may be wondering what it means to be a beneficiary and what you’ll need to do to collect your benefit should your loved one pass.
What should I do to be prepared as a life insurance beneficiary?
Having a good life insurance policy is one way to be prepared for life’s twists and turns. Making arrangements after your loved one’s passing will likely feel difficult, but understanding what you need to do to get your loved one’s affairs in order can help ease some of the strain.
One thoughtful step to take is to have a conversation with your loved one about their life insurance policy. While beneficiaries don’t have access to policy details until after the insured has passed away, it can still be helpful to talk together in advance about what coverage is in place, where the policy is kept, and what steps will be needed to file a claim when the time comes.
When it’s time to file a claim, the process is pretty straightforward. You’ll need a certified copy of the death certificate and a few forms to get started. Plan to order at least a dozen copies from the funeral director or the county health department. This legal document is needed to finalize almost every aspect of your loved one’s affairs. A photocopy is not enough because it lacks the raised registrar’s seal, which makes the certificate valid. If you’re not sure what to do next, your local agent will help guide you through the process. Another way to prepare is to ensure you have all the documentation you’ll need in the event of your loved one’s passing, so that you aren’t searching for it during a challenging time. Here are some things you and your loved one should consider keeping digital or physical copies of in a safe, secure place:
Social Security card
Marriage certificate
Birth certificate for your loved one and for any children
Insurance policies
Deeds and titles to property, such as real estate, stocks, bonds, bank accounts, deeds, and personal property
Vehicle title and registration papers
If your loved one is a veteran, honorable discharge papers and/or VA claim number
Recent income tax forms and W-2 forms
Loan and installment payment books and contracts
How do I collect my life insurance benefit?
You can collect your life insurance benefit, also known as a death benefit, by filing a claim with your local Farm Bureau Insurance of Tennessee agent or calling our life insurance customer service team at 877-876-2222.
It’s important to remember that you don’t have to make an immediate decision about how to receive the benefits. Take time to analyze your financial situation and seek advice from any financial advisors you may have. While death benefits are most often paid out as a lump sum, you may also discuss with your Farm Bureau Insurance agent whether it’s possible to collect a certain amount of money now and hold the rest so that it accrues interest and you can make a withdrawal when you need it. You can also ask about other settlement options that may be available to you.
Can life insurance help pay for a funeral?
Yes. Life insurance policies are designed to act as a safety net of financial support if a loved one dies. A life insurance policy can help pay for your loved one’s funeral, which can cost thousands of dollars. A funeral director will be able to walk you through the steps you need to take to do this.
What else do I need to know as a life insurance beneficiary?
Update home, auto, and life insurance policies to reflect changes in ownership.
Obtain a new title for the deceased’s auto. Contact your state motor vehicle department.
Change beneficiary designations on life insurance policies where the deceased was the named beneficiary.
Change beneficiaries on pension and retirement plans.
Change names on bank accounts and investment accounts.
For anything related to Farm Bureau Insurance of Tennessee life insurance coverage—whether it’s applying for a policy, claiming your death benefit, updating names on policies, or simply some help navigating a tough time—your Farm Bureau Insurance agent is here to help.
