Life Insurance Claims After Death: How to Claim UK 2025 Guide
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Life insurance provides crucial financial support when someone dies, often covering funeral costs, mortgages, debts, and providing income replacement for dependents. But claiming life insurance can be complex: Which policies exist? What documents do you need? Why might claims be rejected? This comprehensive guide explains the entire UK life insurance claims process from finding policies to receiving payment.
In the UK, there are over £70 billion of unclaimed life insurance benefits. Many families don't know policies exist or struggle with the claims process. Whether claiming term life insurance, whole of life cover, over 50s plans, or workplace death in service benefits, this guide covers everything you need to know.
Quick Overview
- Find policies: Search documents, bank statements, use Bereavement Register
- Timeline: Claims take 4-8 weeks, complex cases 3-6 months
- 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
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Step 1: Find All Life Insurance Policies
The first challenge is discovering what life insurance policies existed. Many people have multiple policies they never mentioned to family.
Where to Search
1. Physical Documents
Search the deceased's home for:
- Policy certificates or policy schedules (official documents from insurer)
- Welcome packs or annual statements from insurance companies
- Filing cabinets, safes, or document boxes labelled "insurance"
- Solicitor's office (policies sometimes stored with wills)
2. Bank Statements
Look for monthly premium payments (direct debits):
- Payments to Aviva, Legal & General, LV=, Zurich, Royal London, Vitality
- Typical amounts: £10-£100/month for term life, £5-30/month for over 50s
- Check last 12 months of statements for regular insurance payments
- Note company name and payment amount to trace policy
3. Digital Records
If you have access to deceased's email/computer:
- Search email for "life insurance", "policy", "premium", "Aviva", "Legal & General"
- Check for annual policy renewal emails or premium change notifications
- Look in computer documents folder for scanned policies
- Check password manager for insurance company logins
4. Workplace Life Insurance
Many employers provide automatic life cover:
- Contact deceased's employer HR department immediately
- Death in service benefit typically 2-4x annual salary
- Often exists even if employee didn't actively apply
- Time limits for claims - usually 2 years but claim ASAP
- Separate from company pension scheme death benefits
5. Mortgage Protection Insurance
Linked to property purchase:
- Check mortgage documents from when property purchased
- Ask mortgage lender if life insurance was required or sold with mortgage
- Often decreasing term insurance matched to mortgage balance
- May have been mandatory requirement for mortgage approval
Free Policy Tracing Services
Bereavement Register (Free)
The Bereavement Register (www.bereavementregister.org.uk) notifies financial institutions of death and helps trace unknown policies.
How it works:
- Register deceased's details online (free service)
- Participating insurers check their records for policies
- If policy found, insurer contacts you with claim information
- Covers 95% of UK life insurers
- Results typically within 4-6 weeks
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
Types of Life Insurance in the UK
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 (£50-200/month typical)
- 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).
- Usually pays £3,000-£25,000 (designed to cover funeral costs)
- Cheaper premiums (£10-30/month typical)
- 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.
- Typically 2-4x annual salary (some employers offer up to 8x)
- 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
Step 2: The Life Insurance Claims Process
Contact the Insurer
- Find claims contact details - Check policy document or insurer's website for "life insurance claims" or "bereavement services" phone number. Don't use general customer service.
- Call to register the death - Provide policy number, deceased's name, date of birth, date of death, your relationship. Request claims pack.
- Get claim reference number - For tracking your claim throughout process.
- Ask about timeline - Request estimated processing time and any specific requirements.
Documents Required
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
Submitting Your Claim
- Complete claim form accurately
- Deceased's full details (name, DOB, address, occupation)
- Date, time, and cause of death
- Your details as claimant (name, relationship, contact info)
- Bank account details for payment
- Declaration that information is true and complete
- 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 by deadline - Most insurers require claim within 2 years, but claim ASAP
- Keep copies - Photocopy everything before sending
- Send by recorded delivery - Or upload via secure online portal if available
How Long Does a Life Insurance Claim Take?
Standard Claims: 4-8 Weeks
Straightforward claims with all documents provided:
- Week 1-2: Submit claim and insurer acknowledges receipt
- Week 2-4: Insurer reviews documents and verifies policy validity
- Week 4-6: Claim approved and payment processed
- Week 6-8: Funds arrive in 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.
Complex Claims: 3-6 Months
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 - Most policies exclude suicide within first 12 months, insurer investigates timing
- 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
Delayed Claims: 6-12+ Months
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
Tax on Life Insurance Payouts
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
- Payout goes direct to named beneficiaries, bypassing estate
- Does NOT count toward £325,000 inheritance tax threshold
- Beneficiaries receive full amount tax-free immediately
- No need to wait for probate
- Common for workplace life insurance and newer policies
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
- Must wait for probate before funds released
- Example: £400,000 estate + £200,000 life insurance = £600,000 total. IHT on £275,000 excess = £110,000 tax bill
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
- Newer policies often automatically in trust
- Older policies may not be - can sometimes be moved into trust posthumously
Common Claim Rejection Reasons & How to Appeal
Top Reasons Life Insurance Claims Are Rejected
1. Non-Disclosure of Medical Conditions (Most Common)
Deceased failed to declare pre-existing medical condition when applying for policy.
- Application asks "Have you ever suffered from X?" - deceased answered no, but GP records show diagnosis
- Insurer claims condition was "material" - would have affected premium or acceptance
- Most controversial rejection reason - many successfully appealed
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.
2. Lapsed Policy (Unpaid Premiums)
Policy cancelled because premiums stopped being paid.
- Direct debit failed and deceased didn't rectify
- Insurer sent warnings but deceased didn't respond
- Policy automatically cancelled after 30-90 days non-payment
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.
3. Suicide Within Exclusion Period
Most policies exclude suicide in first 12-24 months.
- Designed to prevent people taking out policies intending to die
- After exclusion period ends, suicide is covered
- Insurer refunds premiums paid if claim declined
How to challenge: Check exact dates - policy start vs death date. Challenge if death cause was accidental not suicide. Review inquest verdict carefully.
4. Excluded Activity or Occupation
Death resulted from excluded dangerous activity or misrepresented occupation.
- Declared office job but actually worked in dangerous industry (construction, offshore)
- Death occurred during excluded activity (skydiving, racing, dangerous sports)
- Policy terms specifically listed exclusions
How to challenge: Review policy wording - are exclusions clear and specific? Argue activity was recreational not professional if relevant.
5. Death Outside UK Without Coverage
Some policies restrict coverage to UK residents or exclude certain countries.
- Death occurred in excluded country (war zones, certain regions)
- Deceased living abroad permanently, invalidating UK policy
- Death during activity overseas not covered
How to challenge: Check policy terms for geographic restrictions. If holiday not permanent move, argue UK residence maintained.
6. Fraud or Misrepresentation
Deliberate false information on application.
- Incorrect age, non-smoker claim when smoker, false medical history
- Insurer must prove fraud was deliberate not accidental error
- Serious allegation requiring strong evidence
How to challenge: Fraud allegations are serious - seek legal advice. Insurer must prove intent to deceive, not just innocent mistake.
How to Appeal a Rejected Claim
Step 1: Request Full Explanation
- Ask insurer for detailed written explanation of rejection reasons
- Request copies of all documents they relied on (application form, medical records)
- Get copy of policy terms showing relevant exclusion clauses
- Review everything carefully with legal/insurance expert if needed
Step 2: Internal Appeal to Insurer
Timeline: Submit within 8 weeks of rejection
- Write formal appeal letter challenging rejection reasons
- Provide counter-evidence (medical opinions, expert reports, witness statements)
- Argue policy interpretation or highlight ambiguous questions
- Request senior manager review (escalate beyond claims handler)
- Insurer must respond within 8 weeks with final decision
Step 3: Financial Ombudsman Service
Timeline: Complain within 6 months of insurer's final decision
- Free, independent service investigating insurance disputes
- Submit complaint online at financial-ombudsman.org.uk
- Provide all correspondence, evidence, policy documents
- Ombudsman investigates and makes binding decision on insurer
- Can overturn insurer decision and order payment
- Success rate approximately 30-40% for overturned decisions
- Process takes 3-9 months typically
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
You don't have to figure this out alone
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You don't have to figure this out alone
Get expert guidance through every step of death administration—from probate to provider notifications—with compassionate AI support available 24/7.
AI probate prep tool
Calculates IHT, validates everything, prepares your application — saves £2,000-5,000 vs solicitor
24/7 AI emotional support
Industry-first companion for guidance and reassurance anytime
Complete contact database
Phone scripts and details for 60+ UK banks, utilities, and providers
Launch pricing • No subscription • All features included
Join families across the UK handling death admin with confidence • Takes 5 minutes to get started
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