What happens to life insurance when someone dies?
The insurer pays the death benefit to the beneficiaries named on the policy. When a living beneficiary is named, the money doesn't go through probate. The beneficiary has to file a claim with the insurer, usually with a certified death certificate. Life insurance paid to a beneficiary is generally not taxable income, though any interest on it is.
Last checked . General information, not legal or financial advice. Rules vary by state.
Who is named on the policy?
Choose one to see what usually happens.
Quick facts
- Life insurance paid to a beneficiary is generally not taxable income, but interest paid on the proceeds is (IRS, as of 2026).
- The NAIC Life Insurance Policy Locator is a free search for a lost policy (NAIC, as of 2026).
- Insurers generally don't pay life insurance money directly to minors (NAIC, as of 2026).
- To claim life insurance you will need a death certificate and the policy number (National Institute on Aging, as of 2026).
Your next step
How do you claim life insurance after someone dies?
The beneficiary files a claim with the insurance company. If you have questions about a claim, your state department of insurance can answer them.
- Find the policy, or at least the name of the insurance company. Check the person's papers, bank statements for premium payments, and any employer benefits.
- Call the insurer's claims department and tell them about the death.
- Send what the insurer asks for. NIA says you will need a death certificate and the policy number.
- Choose how to be paid. The NAIC describes two common options: a single check, or a retained asset account, which works like a checking account held at the insurance company.
How do you find out if someone had life insurance?
Use the NAIC Life Insurance Policy Locator, a free search run by the national association of state insurance regulators. You enter details from the death certificate, such as the person's Social Security number, legal name, date of birth and date of death. Participating insurers then search their records.
You only hear back if an insurer finds a policy and you are the beneficiary. If nothing is found, or someone else is the beneficiary, you won't be contacted. The NAIC itself holds no policy information.
What if the beneficiary has died or is a child?
If no beneficiary is alive, or the policy names the estate, the money may be paid to the estate and handled with the rest of it. Ask the insurer what that policy says.
Insurers generally don't pay money directly to minors. The NAIC suggests an estate or a trust can manage the money for a child.
Is life insurance taxable?
Usually not. The IRS says life insurance paid to a beneficiary is generally not taxable income. Interest is different. Any interest paid on the proceeds is taxable and has to be reported.
Questions people ask
- Does life insurance go through probate?
- No, not when a living beneficiary is named. The insurer pays that person directly. It can go through probate if the policy is payable to the estate.
- Do I need a death certificate to claim life insurance?
- Yes, usually a certified copy, along with the policy number if you have it.
- How do I find a lost life insurance policy?
- Search the NAIC Life Insurance Policy Locator. It is free, and insurers contact you if they find a policy that names you.
More questions
- Can a minor be the beneficiary of a life insurance policy?
- Yes, but insurers generally won't pay a minor directly. The money is usually managed for the child through an estate or a trust.