Farra is a death administration assistant for UK families. Get step-by-step guidance for registering a death, applying for probate, notifying banks, and managing bereavement admin. From essential documents to practical checklists, Farra simplifies estate paperwork and funeral-related tasks so you can focus on what matters.
Find the policies (documents, bank statements for premium direct debits, the ABI's tracing service), contact the insurer with the policy number, and submit the claim form with the death certificate and proof of entitlement. How long the insurer takes is not something any official body publishes. The payout is free of income tax and capital gains tax; whether inheritance tax bites depends on whether the policy was written in trust. If a claim is declined, complain to the insurer and then, if you are still unhappy, to the Financial Ombudsman Service.
Quick Overview
- Find policies: search documents and bank statements, and use the ABI policy tracing service
- Timeline: not published — ask the insurer
- Documents needed: Death certificate, policy, ID, proof of entitlement
- Tax: Payouts are tax-free to beneficiaries (but may affect IHT if not in trust)
- Rejection reasons: Non-disclosure, lapsed policy, suicide exclusions, fraud
- Appeals: Can appeal to insurer then Financial Ombudsman if declined
The first challenge is discovering what life insurance policies existed. Many people have multiple policies they never mentioned to family.
Search the deceased's home for:
Look for monthly premium payments (direct debits):
If you have access to deceased's email/computer:
Many employers provide automatic life cover:
Linked to property purchase:
ABI policy tracing service (free)
The Association of British Insurers runs a free tracing service: you complete one request and it is circulated to member insurers, who check their records and contact you if they hold a policy.
The Bereavement Register is not this. It is often suggested for tracing policies, but it is a free service that removes a deceased person's name and address from marketing mailing lists so that unwanted post stops arriving. Worth using for that — it will not find you an insurance policy.
How it works:
- Complete the ABI request with the deceased's details
- Participating insurers check their records for policies
- If a policy is found, the insurer contacts you with claim information
- It reaches ABI member firms, not every insurer that has ever existed, so treat it as a supplement to searching the paperwork rather than a substitute
Death Notification Service
Similar free service that notifies banks, insurers, and other institutions of death.
Advantages:
- Single notification reaches multiple companies
- Companies respond if they hold policies
- Saves calling dozens of insurers individually
- Free to use for bereaved families
Understanding the type of policy helps with the claims process:
Term Life Insurance (Most Common)
Cover for fixed period (10, 20, 25 years). Pays out only if death occurs during term.
- Level term: Fixed payout amount (e.g. £200,000) throughout term
- Decreasing term: Payout decreases over time (mortgage protection)
- Family income benefit: Pays regular income to family instead of lump sum
- No payout if person survives beyond term
- Cheapest type of life insurance
Whole of Life Insurance
Covers entire lifetime, guaranteed payout whenever death occurs (if premiums maintained).
- Pays out regardless of age at death
- More expensive than term life; premiums vary by age, health and cover, and there is no published typical figure
- Often used to cover inheritance tax liability
- May have cash value that builds up over time
- Premiums usually paid until death or up to certain age (e.g. 90)
Over 50s Life Insurance
Guaranteed acceptance with no medical questions (ages 50-85 typically).
- Cover levels are set by the individual plan and are typically modest, aimed at funeral costs — check the policy for the sum assured
- Cheaper premiums than full underwritten cover
- Often has waiting period (1-2 years) before full payout
- If death in waiting period, premiums refunded but no death benefit
- Very common among older people - always check for these
Critical Illness Cover (with Life Element)
Primarily for serious illness but includes death benefit.
- Pays out on diagnosis of serious illness OR death
- If illness benefit already claimed, death benefit may not pay (or pays reduced amount)
- Check policy terms for death coverage specifics
- May be separate policies (critical illness + term life bundled)
Workplace Death in Service Benefit
Employer-provided life insurance as part of benefits package.
- A multiple of salary fixed by the individual scheme — ask HR
- Automatic for all employees (no application needed)
- Ceases when employment ends (unless continued as personal policy)
- Usually trust-based so tax-free to beneficiaries
- Contact employer HR within 2-4 weeks of death
Essential Documents (All Claims)
- Certified death certificate - Original or certified copy from Register Office (£12.50 when registering death)
- Original policy document - Policy certificate with policy number
- Claim form - Completed form from insurer (sent in claims pack)
- Your ID - Passport or driving licence (certified copy)
Proof of Entitlement (Who Can Claim)
Depends on whether you're named beneficiary:
- Named beneficiary: Copy of policy showing you're named + your bank details for payment
- Spouse/civil partner: Marriage or civil partnership certificate
- Estate (no named beneficiary): Grant of Probate or Letters of Administration
- Trust beneficiary: Trust deed and trustee identification
Additional Documents (Sometimes Required)
- Medical records: GP records or hospital notes if insurer investigating cause of death
- Post-mortem report: If death referred to coroner
- Inquest verdict: For deaths investigated by coroner
- Overseas death documentation: If death occurred abroad, translated documents
- Bank details: Account details for payout transfer
Complete claim form accurately
Answer medical questions truthfully - Disclose all known medical conditions, even if you think they're unrelated to death
Attach all required documents - Checklist usually provided in claims pack
Submit promptly - any deadline for claiming is set by the policy wording, so check it and do not delay
Keep copies - Photocopy everything before sending
Send by recorded delivery - Or upload via secure online portal if available
Straightforward claims
No official body publishes how long life insurers take to settle a claim, and insurers do not generally publish a service standard for it either, so we are not going to invent a number. Ask your insurer, when you submit the claim, what it expects and put the answer in writing. The stages themselves are predictable:
- Submit the claim and the insurer acknowledges receipt
- The insurer reviews documents and verifies the policy
- The claim is approved and payment is processed
- Funds arrive in the beneficiary's bank account
Factors speeding up claims: Natural causes death, policy held for several years, all documents provided upfront, named beneficiary (not estate), death certificate available quickly.
Claims that take longer
Claims requiring investigation or additional information:
- Cause of death unclear - Insurer requests GP records, hospital notes, post-mortem reports
- Policy recently taken out - More scrutiny if death within first 2 years
- Suicide - many policies carry an exclusion for suicide in an early period after the policy starts. The length of that period is set by the policy wording and varies, so read the policy rather than assuming twelve months
- Overseas death - Requires translated documents, verification with foreign authorities
- Suspicious circumstances - Police investigation, inquest, criminal proceedings
- Missing information - Delays if claim incomplete or documents incorrect
Claims where serious issues are identified
Claims where serious issues identified:
- Non-disclosure investigation - Insurer believes deceased failed to disclose medical condition when applying
- Fraud suspected - Unusual circumstances, false information, deliberate concealment
- Disputed beneficiary - Multiple people claiming, unclear who's entitled
- Lapsed policy dispute - Disagreement over whether policy was active
- Legal proceedings - Claim contested in court, criminal investigation ongoing
What If Payment Is Urgently Needed?
If you need funds urgently for funeral costs or immediate expenses:
- Explain urgency to insurer - Some insurers offer emergency interim payments
- Request funeral expense advance - Partial payment (£3,000-£10,000) while full claim processed
- Use estate funds if available - Bank may release funds for funeral from deceased's accounts
- Funeral Payment from DWP - If on benefits, government may help with funeral costs
- Payment plan with funeral director - Many offer deferred payment until insurance pays out
- Income Tax: NO TAX
Life insurance payouts are tax-free to beneficiaries
- No income tax on lump sum received
- Doesn't matter if payout is £10,000 or £1 million
- You don't declare it on tax return as income
- Beneficiaries receive full amount without deductions
Inheritance Tax: DEPENDS ON TRUST STRUCTURE
Whether IHT applies depends on how policy was set up:
Policy Written in Trust - NO IHT
- The proceeds are payable to the trustees of the trust, who then pay the beneficiaries. They never belong to the estate
- They do not count toward the £325,000 nil-rate band on the death
- No grant of probate is needed for the trustees to collect them
- Workplace death-in-service cover is normally held under a scheme trust, which is why it usually falls outside the estate
Policy NOT in Trust - MAY PAY IHT
- Payout goes to the estate (counted in total estate value)
- Counts toward £325,000 IHT threshold (or £500,000 with residence nil rate band)
- If total estate (including payout) exceeds threshold, 40% IHT on excess
- The insurer will usually want to see the grant before releasing the funds
- Example, assuming no residence nil-rate band and nothing passing to a spouse or civil partner: £400,000 estate + £200,000 life insurance = £600,000. Inheritance tax at 40% on the £275,000 above the £325,000 nil-rate band = £110,000. A spouse exemption, or the residence nil-rate band on a home passing to direct descendants, would change that figure
How to Check If Policy in Trust
- Policy document will state "held in trust" or show trust deed
- Named trustees listed (people managing the trust for beneficiaries)
- Ask the insurer - they can confirm trust status
- Writing a policy in trust is something the policyholder has to do, normally by completing the insurer's trust form when the policy is taken out or later. It does not happen by default because a policy is recent
- A policy cannot be put into trust after the death. If it was not in trust when the person died, the proceeds are payable to the estate and that is where they stay for inheritance tax. A deed of variation can change who ultimately receives the money, but it does not retrospectively write the policy into trust
Deceased failed to declare pre-existing medical condition when applying for policy.
How to challenge: Request full application form and GP records. Argue condition was minor, well-controlled, or question was ambiguous. Medical expert opinion can help.
Policy cancelled because premiums stopped being paid.
How to challenge: Check if warnings were sent to correct address. If deceased had dementia/mental health issues, argue they couldn't understand notices. Sometimes insurer reinstates if very recent lapse.
Many policies exclude suicide for a period after the policy starts. The length of that period is set by the policy wording.
How to challenge: Check exact dates - policy start vs death date. Challenge if death cause was accidental not suicide. Review inquest verdict carefully.
Death resulted from excluded dangerous activity or misrepresented occupation.
How to challenge: Review policy wording - are exclusions clear and specific? Argue activity was recreational not professional if relevant.
Some policies restrict coverage to UK residents or exclude certain countries.
How to challenge: Check policy terms for geographic restrictions. If holiday not permanent move, argue UK residence maintained.
Deliberate false information on application.
How to challenge: Fraud allegations are serious - seek legal advice. Insurer must prove intent to deceive, not just innocent mistake.
Timeline: Submit within 8 weeks of rejection
Timeline: Complain within 6 months of insurer's final decision
Tips for Successful Appeals
- Get medical expert opinion: Doctor's letter explaining condition's nature can be powerful
- Challenge ambiguous questions: If application question was unclear, argue reasonable interpretation
- Highlight good faith: Premiums paid for years = no intent to defraud
- Proportionality argument: Minor non-disclosure shouldn't void entire policy
- Get legal help: Solicitor specialising in insurance disputes can significantly improve success
Sources
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