Life Insurance Payouts After the Insured's Death: A Complete Guide for Beneficiaries

When the insured passes away, the life insurance contract ends, and the accumulated capital is distributed to the beneficiaries named by the policyholder. To access these funds, beneficiaries must notify the insurance company and submit all required documents. They have a 10-year window to claim their rights.

In What Forms Can Beneficiaries Receive the Capital?

Following the insured's death, beneficiaries can choose from three payout options:

• Cash payment via check or bank transfer. For unit-linked policies (UCITS), the amount equals the euro value of those units at the time of payout.
• For unit-linked contracts, beneficiaries may opt to receive the securities directly by transferring UCITS units to their own securities account. This is uncommon but advantageous during market downturns, allowing holders to wait for price recovery before selling.
• Some insurers allow beneficiaries to open a new life insurance policy in their name, transferring the capital directly—often with reduced or waived entry fees.

Each beneficiary decides independently. For example, with two beneficiaries, one might choose cash while the other opens a new policy.

What Formalities Must Beneficiaries Complete?

Insurers aren't required to proactively locate beneficiaries, so it's essential to contact them promptly upon the policyholder's or insured's death.

To receive the capital, beneficiaries must follow the contract's general conditions: send a notification letter of the death, then compile a complete claims file. This includes documents about the deceased and the beneficiaries.

Important Warning: "Sums from an unclaimed life insurance policy 10 years after the insured's death are transferred to the Caisse des dépôts et consignations and lost to the beneficiary," notes P. Catherinet, manager of Cieleden and funeral insurance expert.

Documents for the Deceased Insured

Typically required:

• Original death certificate or copy;
• Civil status extract or copy of national ID card;
• Signed subscription form and any amendments;
• Address of the deceased's tax office.

Documents for the Beneficiary(ies)

Required items include:

• Proof of identity (civil status extract, ID copy, or family record book);
• Beneficiary address(es);
• Request letter specifying payout form (cash, securities, or new policy transfer);
• Bank or postal account statement per beneficiary;
• Sworn statement of tax reliefs used from other insurers.

If designated by will, provide a copy of the will.

Assembling the file can be time-consuming but is crucial for swift payment—insurers disburse only upon receiving everything. With multiple beneficiaries, full files from all are needed before any payouts.