What is the timeframe for insurers to pay out benefits under a group life insurance policy after the insured's death?

Insurers are required to pay out benefits under a group life insurance policy within 30 days after receiving proof of the insured's death. This timeframe is established to ensure that beneficiaries receive funds in a timely manner to help cope with the financial burden associated with the loss of a loved one.

The 30-day requirement is designed to balance the insurer's need to verify the claim details and the beneficiaries’ need for prompt financial support. In contrast, shorter timeframes may not allow sufficient time for thorough claim processing, while longer periods could delay essential financial assistance to beneficiaries. Thus, 30 days serves as a reasonable and legislatively supported period for insurers to fulfill their obligations after confirming the claim.