How does life insurance work when someone dies?

Losing a loved one can be one of the hardest things to go through. At Tesco Insurance, we understand how important it is to feel supported. You may not be sure where to begin or whether a policy exists.

If you can’t find a life insurance policy, or you’re not sure whether a relative or friend had a policy, here are a few places you can look to find out:

When trying to locate a life insurance policy, regular monthly payments can be a good clue. Life insurance payments are usually direct debits to a life insurance provider, so keep an eye out for any insurers you recognise. Often the reference number is also the policy number, so, if you see anything that looks like a life insurance payment, take a note of the reference number to help you out later on.

If you’re the next of kin, you might be able to request access to your loved one’s email account through their provider. Try searching for terms like ‘life insurance’, ‘policy number’ and ‘policy schedule’.

Reaching out to insurers through ‘contact us’ pages, and providing the deceased person’s full name, date of birth and any previous addresses can work.

If you can’t find a life insurance policy right away, don’t worry. This happens more than you think, and there are some more steps you can try.

Some policies like whole of life or over 50s life insurance stay active for life, even after payments stop. For example, with many over 50s plans, premiums stop after a set number of years, but the cover continues until the policyholder dies.

If you think this might apply, checking old paperwork, emails or files can be especially helpful.

For more clarification on the different types of life insurance, see our guide - Types of life insurance explained.

If you’ve tried those steps and you still can’t find the details you need, try contacting either:

If the person had life insurance and passed away during their policy term, their insurer can guide you through the claims process. You can usually start the life insurance claim process online or by phone, but you’ll need a few details to hand.

If you have the information you need and you know there is a life insurance policy, it’s a good idea to gather the following details before you contact the insurer.

Just in case they ask for it, it's also handy to have the following bits of information ready:

Life insurance companies usually ask for an original death certificate. These cost a fee, and you can get them from the General Register Office. Once you’ve contacted the insurer, the claims advisor will talk you through any other documents they need.

If you’re making a claim with Tesco Life Insurance, you can contact Aviva, our life insurance provider. They can guide you through the process online or over the phone.

Dealing with things after losing someone close can feel overwhelming. Our bereavement support is here to help guide you through what to do next.

If the life insurance provider has all the details they need and the claim is approved, the payout can often be made within a week or two. At Tesco Life Insurance, we try to make payments as soon as we can, but timings can vary depending on:

A trust names life insurance beneficiaries directly, which can speed up pay-outs and claims because the payout doesn’t form part of the estate - so it can usually get paid before probate is granted.

A lump sum usually gets paid out to the legal owner of the policy, but it depends on whether the policy is joint, written in trust or paid into an estate.

For joint policies, the remaining policyholder usually gets the life insurance payout.

If the policy was placed in a trust, the trustees handle the payout and pass it on to the chosen beneficiaries.

If the policy wasn’t in a trust, the payout goes into the estate. The executor (if there’s a will) or administrator (if there isn’t) will distribute the money according to the will or intestacy rules.

Find out more about what it means to be a life insurance beneficiary, see our guide - What is a life insurance beneficiary.

Life insurance can cover funeral costs by providing a cash payout to your beneficiaries when you pass away, which can be used to pay funeral expenses and other immediate bills. Many people take out life insurance to cover funeral costs because the lump sum is paid directly to loved ones and can often be accessed quickly, helping to avoid financial stress at a difficult time. Choosing life insurance for funeral expenses can offer greater flexibility, but deciding between life insurance or a funeral plan depends on your budget, health, and what type of cover you want.

Life insurance is there to help your loved ones once you’re not around. That means it’s a good idea to make sure a family member knows:

When things have settled, it's a good idea to look at your own plans and check that you have the right level of cover to look after your loved ones or whether you should think about topping up your existing cover with another Tesco Life Insurance policy.

You can learn more in our guide - How much life insurance do I need?

At Tesco Insurance, we want to help you with the things that matter most. That’s why Tesco Life Insurance comes with a Big Win and lots of Little Helps.

As well as your Tesco benefits, you’ll also get health and wellbeing services from Aviva.

Tesco Life Insurance is provided and administered by Aviva, who have a 5-star Defaqto rating for life insurance and pay out on 98.7% of claims*.