Wondering about ACPL life insurance...

Q. I am curious as to what exactly happens when I am deceased. How does life insurance pay out? Does my beneficiary receive a check? How long does it take to receive it? Will the beneficiary receive it in time to pay for funeral and burial expenses?Also, if my beneficiary is still a minor, is the money held somewhere? Or is he given a check?

A. I ran your questions by the claims representatives at both American United Life (AUL)insurance company (ACPL provided life insurance) and UNUM (voluntary life insurance).

How does the life insurance pay out? Does my beneficiary receive a check?

AUL will issue a lump sum check within five business days after receiving a death certificate, completed claim form, and a copy of the enrollment form listing beneficiaries. With UNUM, the Library completes the claim form and sends it along with the death certificate. The claims are processed in 5-10 business days. If the amount to each beneficiary is under $10,000 they will issue a check. If it is more, they will transmit the money to a bank account.

Will the beneficiary receive the money in time to pay for funeral and burial expenses?

Since most funeral homes give 30 days to pay the bills, your beneficiary should receive the money in time if the paperwork is completed in a timely manner. Both AUL and UNUM will take assignment, which means they will pay the funeral home directly and give your beneficiary the balance if that is your beneficiary’s choice.

If my beneficiary is a minor, is the money held somewhere, or is he given a check?

AUL says it depends on how large of sum is involved. If it is under $5,000, they will make a uniform transfer to the minor (meaning it goes into a special type of account). If the amount is larger, the court has to process guardianship papers. UNUM says that they issue money to minors in the form of a trust.

Please check with one of us in HR if you'd like additional information.

Judy Dunahue
ACPL Human Resources