Help with life insurance claims

How claims are processed and proceeds are paid

A Life claim can be filed in the following ways:

Helping your employees or their beneficiaries file life insurance claims might not be that familiar to you. But when an employee or beneficiary needs your help submitting a life claim, knowing what to do is important.

These 5 videos walk through key information about each of the claim situations listed below.

For you

For employees and beneficiaries

No, there is no filing limitation on submitting a death claim. However, the sooner you can submit the claim, the easier it will be for us to obtain the information needed to process it. Over time, it can become more difficult to obtain needed documentation and proof-of-loss information. It is up to the beneficiary to provide the required information to substantiate coverage and loss.

Our goal for making decisions on straight-pay Life claims is 7 days from the receipt of the claim. In circumstances where additional information is needed to make a decision, we will pend the claim until the additional information is received. 

Benefit checks are issued in a lump sum payment.

If there is no named beneficiary, or the beneficiary is deceased, our contract provides us with guidance on whom the proceeds should be paid to. This is called Facility of Payment. 

Yes, the beneficiary can assign proceeds to a funeral home. The beneficiary will need to obtain a Funeral Home Assignment form from the funeral home. This form should designate Principal Life Insurance Company as the insurance company, specify a dollar amount for the assignment, and list the policy number and funeral home tax ID number. The beneficiary should sign the form. 

We need to receive court documents of appointment before proceeds can be issued to an estate. The documents of appointment are referred to as the Letters of Administration (issued when there is no will) or the Letters of Testamentary (issued when there was a valid will at the time of death). This documentation will need to name the personal representative of the estate, often referred to as the executor, administrator, executrix, etc. 

Before paying to a designated trust or trustee, we will verify that the trust is in force and that the trustee has not changed. We need to receive a copy of the trust, which names the trustee. After receiving this documentation, proceeds will be paid to the designated trustee. 

By law, minor beneficiaries are incapable of giving a valid release for the receipt of any benefits paid to them.

  • Whenever possible, proceeds are paid to the legal guardian or conservator of the estate of the minor. We need to receive a copy of the court order appointing guardianship, along with the claim form, before making payment of proceeds.
  • If guardianship documents are not submitted, the proceeds are paid to an interest-bearing individual annuity account to be claimed when the minor reaches the age of majority.
  • In some instances, the Uniform Transfers to Minor Act (UTMA) can be used to pay the proceeds. Many states have specific criteria, which must be met to utilize this option of payment. In general, Principal Life would select a custodian, who would select a bank. The proceeds are paid to the custodian and minor beneficiary and forwarded directly to the bank account.

No, Life Premium Waiver is not included on every group life insurance contract. The employer must elect this provision as part of the employer-sponsored benefit program. 

Are you an employee?