My friends husband just died and she asked to borrow money for the funeral and other costs. How long does it usually take to collect the insurance money, so i will know how long to extend the repayment date.
Connor: If her husband had life insurance and she is the beneficiary the insurer will almost always pay within 30 days on a valid claim – and often within a week of getting the death certificate. It's also a good idea to send them a copy of the obituary.
BUT if the estate is the beneficiary she may have to wait until the estate is settled before getting the money – and then only after his estate's debts are paid.
I know you feel for your friend, and you want to help. Very admirable. Just please make sure you know what you're getting into, and please, please get an agreement in writing as to when she will pay you back. Be sure not to say "as soon as she gets the insurance money". Put a specific time table for repayment. It has nothing to do with trust, and I'm not saying she's scamming you. But with your most important relationships better to make sure everyone is clear about what is supposed to happen so you can minimize miscommunications that can only lead to angry, hurt feelings and lost friendships.
You don't have to.
Every funeral home will wait for the insurance to arrive.
It shouldn't be more than a month.
It could be a couple of weeks, but more likely it will be a couple of months. The lady needs to contact the insurance company, file the appropriate papers and forward a notarized copy of the death certificate. Some people act faster than others after the loss of a spouse, and some insurance companies process claims quicker than others. Sorry for her loss.
Funeral Directors will always wait until the Insurance has paid out.
They don't ask for money in advance.
You might want to first check that there is life insurance and to make sure she is the beneficiary before handing over any money. Ask to see the insurance documents. You can do this in a way that does not upset her. Just say you want to make sure everything is ok so that she knows how much she can spend.
Generally life insurance pays out very fast if everything is in order.