How Does Life Insurance Work When Someone Dies? 
When the insured person of a life insurance policy dies , someone must report it to the life insurance company . They usually have a phone option for death claims and are very helpful in getting you the paperwork needed . When my father died a couple of years ago , the funeral home took care of that request . You will need to order a certified death certificate to send to the insurance company . When you get that and have the paperwork ready , send them all together to the insurance company . They will send you a check for the lump sum , or you can take the death benefit on a payment plan and spread them out over a number of years . 