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When a policyholder passes away, beneficiaries will typically receive the death benefit payout. But it’s important to be aware that there are a few instances where life insurance won’t pay out. Top reasons life insurance won’t pay out may be because the policyholder lied on their application, their death was the result of suicide, or they passed away during the waiting period. Let’s dive deeper into how life insurance payouts work, how long it takes to receive a payout, and some reasons life insurance won't pay out.
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To collect a life insurance payout, beneficiaries must file a claim after the policyholder passes away. Once the life insurance company receives a certified copy of the death certificate and claim form, they’ll likely process it and pay the beneficiaries via their preferred payout method. The average life insurance payout a beneficiary can receive vary based on the policy type, insurance company, riders, and other factors. Some types of life insurance payouts include:1
The lump-sum payout is the most common option. With this type of payout, beneficiaries receive the entire death benefit at once in a single payment.
With a retained asset account, the proceeds of the policy are kept in an interest-bearing account. The beneficiaries can then use special checks to withdraw cash and will have to pay taxes on any interest they earn.
The specific income payout allows beneficiaries to receive monthly installments over a set time period while the money is held in an interest-earning account. This ensures that their funds don’t run out too quickly.
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Get StartedNow that you know how life insurance payouts work, you may be wondering how long it takes for life insurance to pay out. In many cases, it takes anywhere from 14 to 60 days for beneficiaries to receive a payment after a completed claim is submitted.1 But many factors can impact this time frame. These may include the insurance company’s procedures, when the claim is filed, how long the policy was active, the cause of death, and state laws regarding insurance payouts.
Fortunately, life insurance usually pays out the full value of the policy to the beneficiaries when the policyholder dies. Insurers are generally required to fulfill their promise of a pay out, as long as policy requirements have been met. Sometimes, however, life insurance won’t pay out.
Here are some common reasons why life insurance won’t pay out:
If the policyholder stopped paying their premiums, the insurance policy may lapse. In this situation, the insurer can cancel the policy and not pay the death benefit.2
Applying for life insurance requires accurate information about a policyholder's health and lifestyle. If important information is omitted or inaccurately provided on the application, the insurer may deny or adjust the claim.2
There are some states and life insurance companies with a suicide provision. This provision states that if death by suicide occurs within a specified period after the policy is issued, the death benefit may not be payable.1 This period is usually within the first two years.
If the policyholder passed away while engaging in illegal or criminal activities, the insurer can deny their claim.1
A term life insurance policy doesn’t last forever. If the policyholder outlives their term, which might be 10, 20, or 30 years, there won’t be a payout.
Some types of life insurance come with a waiting period that may last between 90 days to 2 years. If the policyholder dies during it, beneficiaries get back the premiums page instead of the full death benefit.3
If a life insurance company denies your life insurance claim and you believe their denial was wrong or unfair, you may follow these steps:
The main purpose of having a life insurance policy is to help provide your beneficiaries with a payout or death benefit upon your passing. While life insurance payouts usually occur after a claim is properly filed, there are some instances where they’re denied by the insurer. By understanding the reasons a life insurance claim may be denied and the time it may take for benefits to be paid, you and your beneficiaries can help avoid surprises in the future.
If you're interested in a life insurance policy, check out Aflac’s term and whole life insurance plans. Contact an agent today to get a quote and request more information.
Get Started
The life insurance payout beneficiaries receive depends on several factors. Learn what the average life insurance payout is and how payouts are determined.
Wondering how long life insurance takes to pay out? Learn how payouts work and how long it may take for your loved ones to receive the death benefit.
The life insurance payout beneficiaries receive depends on several factors. Learn what the average life insurance payout is and how payouts are determined.
Wondering how long life insurance takes to pay out? Learn how payouts work and how long it may take for your loved ones to receive the death benefit.
1 U.S. News & World Report - How Will Life Insurance Pay My Beneficiaries? Updated May 18, 2026. https://www.usnews.com/insurance/life-insurance/how-life-insurance-pays-beneficiaries. Accessed June 17, 2026.
2 Daly & Black - How Long Do Life Insurance Claims Take? Updated March 21, 2025. https://www.dalyblack.com/how-long-do-life-insurance-claims-take/. Accessed June 17, 2026.
3 MoneyGeek - What Is a Life Insurance Waiting Period? Updated June 4, 2026. https://www.moneygeek.com/insurance/life/life-insurance-waiting-period/. Accessed June 17, 2026.
4 Kadetskaya Law Firm LLC - How to Appeal a Denied Life Insurance Claim: A Step-by-Step Guide. Published June 2, 2026. https://www.life-insurance-lawyer.com/blogs/how-to-appeal-a-denied-life-insurance-claim. Accessed August 12, 2026.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent/producer.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.
Aflac life plans – A68000 series/Term Life: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68200, A68300 & A68400. In New York, Policies NY68200, NY68300 and NY68400. Whole Life: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368100. In Delaware, Policy A68100. In New York, Policy NYR68100. B60000/Term Life: In Arkansas, Oklahoma, Pennsylvania, Texas & Virginia, Policies ICC18B60200, ICC18B60300, & ICC18B60400. Not available in Delaware, Idaho, New York and Oregon. Whole Life: In Arkansas, Oklahoma, Pennsylvania, Texas & Virginia, Policies: ICC18B60C10, ICC18B60100. Not available in Delaware, Idaho, New York and Oregon. Q60000 series/Term Life: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania & Texas, Policy ICC18Q60200M. In Delaware, Policy Q60200M. In New York, Policy: NYQ60200M. Not available in Virginia. Whole Life: In Arkansas, Delaware & Oregon Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In New York, Policy: NYQ60100M. Not available in Virginia.
Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (NAIC 92908).
In AR, DE, ID, OK and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Not available in NY.
Coverage/plan levels may not be available in all states, including but not limited to NM or VT. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions.
Aflac WWHQ | Tier One Insurance Company | 1932 Wynnton Road | Columbus, GA 31999.
Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
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