Benefit Payments – How Long to Wait?

How soon you receive benefit payments varies widely with the kind of insurance, the kind of loss, and the laws of the state where you live. For example, insurance companies usually wait at least 30 days before paying out for a stolen car in the hopes that the car will turn up. Life insurance claims can only be paid after the company receives an official death certificate. Small auto accident claims are often paid on the spot after the damage is estimated by an insurance adjuster.

Almost all states have guidelines that spell out the amount of time a company has to respond in writing to a claim and to pay benefit payments a claim once a settlement has been reached. Unfortunately, though, these rules come complete with loop holes that allow insurers to delay at length if they question your claim.

On the bright side, though, insurers are usually eager to pay benefit payments, since delays only add to the cost of doing business.