Insurance Matters After Death – Life Insurance, Group Insurance and Kela
· 4 min read
Claiming life insurance
Life insurance is one of the most important matters to investigate after a loved one's death. The life insurance payout can provide significant financial security for the family during a time of grief.
Check whether a policy exists
The first step is to find out whether the deceased had life insurance. Information can be found:
- In insurance documents among the deceased's papers
- In online banking transactions -- insurance premium debits
- Directly from insurance companies -- shareholders can enquire with an official certificate
Claiming the compensation
Life insurance is claimed from the insurance company in writing. The application requires:
- Death certificate or DVV's certificate of death
- Beneficiary's identity document
- Insurance policy, if available
- Genealogical extract, if no beneficiary has been designated
The compensation is paid to the beneficiary named in the policy. If no beneficiary has been specifically designated, the compensation is paid to the estate and is taken into account in the estate inventory. The application should be made as soon as possible -- the insurance company usually processes it within 1--4 weeks.
Group life insurance
Group life insurance is a policy taken out by the employer, included in almost all collective agreements in Finland. Many people are unaware of this insurance, so it is always worth checking.
Who receives the compensation?
- The spouse (married or cohabiting partner who has lived with the deceased for at least 5 years or has a shared child)
- Children under 18
Compensation amount
The sum depends on the deceased's age at the time of death:
- Under 50: approximately 17,000--20,000 euros
- 50--59: approximately 10,000--16,000 euros
- Over 60: approximately 5,000--8,000 euros
The compensation is tax-free up to a certain limit. Contact the deceased's employer or trade union to find out the details of the group life insurance.
Cancelling insurance policies
The deceased's insurance policies do not automatically end upon death. The estate shareholders must cancel unnecessary policies.
Keep in effect for now
- Home insurance -- protects the deceased's home and belongings until the home clearance is completed
- Car insurance -- motor liability insurance is mandatory as long as the car is in the estate's name
Cancel
- Accident insurance
- Travel insurance
- Health insurance
- Phone insurance and other device-specific policies
The insurance company will refund the unused premium period to the estate. Submit the cancellation in writing and include a death certificate.
Kela benefits in the event of death
Kela receives notification of the death automatically from DVV, but benefits must be applied for separately.
Survivor's pension
A survivor's pension may be available to a surviving spouse under 65 who:
- Is or has been married to the deceased
- Has or has had a shared child with the deceased, or
- The marriage was contracted before the spouse turned 50 and lasted at least 5 years
Child pension
Children under 18 can receive a child pension from Kela. The pension consists of a basic amount and a supplementary amount that depends on the family's income.
The deceased's Kela benefits
Benefits paid until the end of the month of death (such as the national pension) belong to the estate. Overpaid benefits are recovered.
Checklist for insurance matters
- Check the deceased's life insurance policies and claim compensations
- Check group life insurance with the employer
- Apply for survivor's and child pensions from Kela
- Cancel unnecessary insurance policies
- Keep home insurance in effect during the home clearance
- Retain insurance documents for the estate inventory
Read more about handling banking matters after death and the estate administrator's duties.
Frequently asked questions
How is life insurance claimed?
The compensation is claimed from the insurance company with a written application, accompanied by a death certificate and the beneficiary's identity document.
What is group life insurance?
A life insurance policy taken out by the employer for their employees, included in most collective agreements. The compensation is paid to the spouse and children under 18.
What Kela benefits can be applied for?
Survivor's pension, child pension, and a possible funeral grant. Benefits must be applied for from Kela separately.
Frequently asked questions
How is life insurance claimed?
Life insurance is claimed from the insurance company with a written application. The application must include a death certificate and the beneficiary's identity document. The compensation is usually paid within 1–4 weeks of processing the application. If no beneficiary has been designated, the compensation is paid to the estate.
What is group life insurance?
Group life insurance is a life insurance policy taken out by the employer for their employees, included in most collective agreements in Finland. It is paid automatically to the deceased's spouse and children under 18. The amount depends on the deceased's age and family circumstances – typically 5,000–20,000 euros.
What Kela benefits can be applied for after a death?
You can apply for a survivor's pension, child pension, funeral grant (for war veterans' next of kin), and changes to general housing allowance from Kela. A survivor's pension is paid to a surviving spouse under 65 who has or has had children with the deceased. A child pension is paid to children under 18.
Should the deceased's insurance policies be cancelled immediately?
Home insurance and car insurance should be kept in effect until the property has been transferred or sold. Other policies, such as accident and travel insurance, can be cancelled immediately. The insurance company will refund the unused premium period to the estate.
How do I find out about all of the deceased's insurance policies?
Request a list of the deceased's policies from insurance companies. You can also check the deceased's online banking transactions – insurance premiums appear as debits. Information about all policies is needed for the estate inventory, so the investigation should be started early.
Read also
A practical guide to the first hours after a loved one's death. Who to contact, what documents you need, and how to take care of yourself.
A clear guide to estate banking matters: the deceased's account, paying bills, bank-specific instructions and required documents.
What documents are needed for an estate inventory? A comprehensive list: family records, civil registry certificates, will, bank statements, and property documents.