The insurance claims process is an arduous one. The insurance claim life cycle has four phases: adjudication, submission, payment, and processing. It can be difficult to remember what needs to happen at each phase of the insurance claims process. This blog post will break down the insurance claims life cycle for you so that you know where your claim stands!
Adjudication insurance claims are typically the first step in your insurance claims life cycle. Adjudication is where proof of loss documentation must be submitted to an insurance company, which then determines if you have a valid claim for payment based on the details given by the claimant. This phase can take some time as it requires many parties to gather all of the needed insurance claim information.
Submission insurance claims are generally the second part of your insurance claims life cycle, depending on how long it takes to receive an adjudication decision from your insurer. If you do not hear back after a certain time period (usually within 30 days), then this phase begins with sending in proof-of-loss documentation to your insurance company. It is important to submit claims in a timely manner, especially if you are waiting for an insurance payout!
The third part of the insurance claim life cycle is payment insurance claims. This phase can be divided into two parts depending on whether or not there were any changes when the insurer processed your insurance claim. If your insurance claim is on the lower end, you may receive a payment within a few days of submission. If there were significant changes to be made on your insurance claim (i.e., new information was submitted), then it can take up to six weeks for insurance claims processing.
The final phase in the insurance claims life cycle is insurance claims processing. This is where your insurance company will send you a check or electronic payment for the number of damages covered by your insurance policy, minus their deductible and any insurance premiums that have been assessed to date on your account. The four phases may seem daunting at first glance, but as long as you follow each step along the way, this process should go smoothly for you and your insurance claim!
So, those are the four phases of insurance claims. As long as you know what to expect and when to expect it, dealing with insurance companies during this process will be much easier! Remember to keep all your documentation in a safe place so that you can easily find it if needed. And most importantly, stay patient – these things take time.