Filing a life insurance claim when the death happens abroad

A death overseas is claimed the same way as one at home, but the paperwork is different: instead of a state death certificate, the insurer will usually want the foreign death certificate (with a certified English translation if needed) and the U.S. State Department's Consular Report of Death of a U.S. Citizen Abroad. Expect the claim to take longer than a domestic one, because insurers often verify the cause of death with foreign records. Policies that cover a U.S. resident generally pay regardless of where in the world the death occurred, unless an exclusion applies.

Everything in how to file a life insurance claim still applies. This guide covers what changes.

The documents you will need

The Consular Report of Death Abroad

When a U.S. citizen dies in another country, the nearest U.S. embassy or consulate is typically notified, helps the family and prepares a Consular Report of Death Abroad (also called a CRDA or Form DS-2060). According to the State Department's Passport Vital Records page, the family receives up to 20 certified copies free at the time of the death, and later copies requested by the next of kin or a legal representative of the estate cost $50 each (check the page for the current fee before ordering). The report is generally accepted by U.S. courts and institutions as proof of death, which is why insurers, banks and the Social Security Administration ask for it. It is not a substitute for the foreign certificate, so the insurer may ask for both.

To reach the State Department about a death overseas, use the Department's Overseas Citizens Services line or the embassy where the death occurred. The embassy can also explain local procedures, but it does not pay for the return of remains, which the family generally covers.

Step by step

1. Contact the embassy or consulate where the death occurred and ask about the CRDA, the local death certificate and local rules for autopsy, burial or return of remains.
2. Order extra copies of the foreign certificate and the CRDA. You may need them for insurers, banks, retirement plans and court filings.
3. Get translations from a certified translator if the certificate is not in English.
4. Locate the policies, including group coverage from an employer, a credit card or travel insurance bought for the trip. how to find a lost life insurance policy covers where to look.
5. Notify each insurer promptly. Say plainly that the death occurred abroad and ask what the insurer wants. Some will want an authorization to obtain foreign medical records.
6. Send the packet and keep copies, as in documents you need for a life insurance claim.
7. Ask about travel insurance and employer benefits. Policies for the trip may pay for repatriation of remains or an emergency medical evacuation, and some employer plans include travel accident coverage.

What can slow the claim

• Verification of the cause of death. Foreign certificates differ in detail and quality. If the insurer cannot confirm how the person died, it may investigate through local authorities, which adds weeks or months. Typical timing is discussed in how long life insurance takes to pay out.
• Death within the contestability period. If the policy is less than two years old, the insurer will compare the application with medical history. See the two-year contestability period.
• Missing or doubtful records. If the death certificate is unreliable, or no body was recovered, the process may resemble life insurance when someone is missing or presumed dead, with a court order needed.
• Accidental death riders. An accidental death benefit requires proof the death was an accident. See accidental death claims: why they get disputed.

Exclusions that can matter overseas

Most life policies do not restrict where the insured lives or travels, and the benefit is payable if the person dies abroad of natural causes or in an accident. A few exceptions are worth checking:

• War or military service. Some policies exclude death from war, whether declared or not, or while serving in the armed forces of a country. Details are in war, terrorism and aviation exclusions in life insurance.
• Hazardous activities and aviation. Policies sometimes exclude or limit coverage for some risky activities, such as piloting an aircraft.
• Residence and travel clauses. An applicant who moves abroad or travels extensively may have been rated or restricted. Coverage for people living outside the United States is a separate market; see Life insurance for Americans living abroad and foreign travel and life insurance applications.
• Material misstatement. If the applicant did not disclose plans to live overseas, the insurer could dispute the claim.

If an insurer denies the claim, request the reason in writing and see why life insurance claims get denied.

Other practical points

• Payment currency and method. Benefits are paid in U.S. dollars to the named beneficiary. A beneficiary living abroad can ask for an electronic transfer.
• Taxes. Death benefits are generally not income, but interest paid on late claims is, and the estate may be subject to estate tax rules if large; see is life insurance taxable?.
• Scams. Be careful with anyone who contacts the family claiming to speed up repatriation or insurance. Insurers do not charge to process a claim.

Key takeaways

• A death abroad is claimed like any other, but expect to supply the foreign death certificate, a certified translation and the CRDA.
• The State Department says families receive up to 20 free certified copies of the CRDA at the time of death; later copies carry a fee.
• Foreign records take longer to verify, so claims often run slower than domestic ones.
• Check the policy for war, aviation, hazardous-activity and residence clauses.
• If remains are not recovered or the certificate is doubtful, a court declaration of death may be required.