What to do when a Aflac account holder dies

An ILIT is a legal arrangement where a trust owns a life insurance policy, removing the death benefit from the grantor's taxable estate. Aflac states that you can build an ILIT into their term or whole life insurance plans. The trust can own the policy from inception, or an existing policy can be transferred to the trust, subject to a three-year lookback rule under IRC Section 2035. Once established, the grantor permanently relinquishes control of the policy. Aflac does not set up ILITs; you must work with an estate attorney to establish one. Benefits of an ILIT include estate tax reduction, asset protection, and controlled distribution of the death benefit.

The fastest method is to file online through your MyAflac account at mylogin.aflac.com or through the MyAflac mobile app, both available 24/7. You can also download state-specific claim forms from aflac.com/file-a-claim and submit by fax to 877-442-3522 or by mail to Aflac, 1932 Wynnton Road, Columbus, GA 31999. You can also call 800-992-3522 for claims assistance (Monday-Friday, 9:00am-7:00pm ET). You will need the policy number, a certified death certificate, and a completed claim form. For Illinois life claims, forms must be requested by calling 800-992-3522.

You will need a completed life/accidental death claim form (state-specific), a certified death certificate, government-issued ID for the beneficiary, and the policy number. If the policy is less than two years old, a physician's statement from the deceased's doctor is required. If death was due to an accident, include a copy of the police report. If a trust is the beneficiary, trust documents and trustee identification are also required.

Aflac states that life insurance claims typically take 14 to 60 days from the date the claim is filed to death benefit payout, depending on documentation completeness and policy review. Setting up direct deposit can speed up payment. Delays may occur if documentation is incomplete, the policy is within the two-year contestability period, or if the circumstances of death require further investigation.

Aflac offers several payout methods: a lump-sum payment (the full death benefit in one payment), an installment payout (benefits distributed on a fixed schedule -- monthly, quarterly, or annually), a specific income payout (the payout placed into an interest-bearing account with chosen monthly or annual payments), an annuity payout (guaranteed payments for the remainder of the beneficiary's life), or a retained asset account (an interest-bearing account you can write checks against as needed). Life insurance payouts are generally not taxable income, though interest earned through certain payout methods may be subject to taxes.

Yes. Beneficiary designations on Aflac insurance policies take precedence over instructions in a will. Once the policyholder passes away, the beneficiary designation cannot be changed. If your policy names one person as beneficiary but your will names a different person, the policy beneficiary receives the death benefit. Review and update beneficiary designations regularly, especially after major life events such as marriage, divorce, or the birth of a child.

Yes. Aflac supplemental insurance policies allow beneficiary designations, though the structure varies by product. Accident insurance includes an accidental death benefit payable to a named beneficiary. Cancer and critical illness policies pay cash benefits directly to the policyholder during their lifetime, but may include a death benefit component depending on the specific policy terms and state. These supplemental policies cannot be retitled to a trust. Review your policy or contact Aflac at 800-992-3522 for details on your specific coverage.