Life insurance policies provide specific death benefits that can be claimed. Some benefits may require prompt filing to be effective, such as burial-specific benefits.
It is common for individuals to have multiple life insurance policies. This includes policies issued directly to the deceased or to the deceased through other organizations, such as their workplace, church, government, or other affiliations.
Below are some less commonly considered examples of life insurance benefits:
Mortgage life insurance: If the deceased had mortgage life insurance, it could pay off the remaining mortgage balance.
Credit life insurance: Some loans come with credit life insurance that pays off the loan balance upon the borrower’s death.
Employer-provided life insurance: Many employers offer life insurance as part of their employee benefits package.
Union or professional association-provided life insurance: Some unions and professional organizations provide life insurance to their members at a discounted or group rate.
Religious organization-provided life insurance: Some religious organizations provide life insurance to their patrons at a discounted or group rate.