Processing Insurance Assignments: Workflow Best Practices to Avoid Delays
Practical strategies to accelerate insurance claim processing, reduce payment delays, and improve cash flow through optimized assignment workflows
Key Takeaways
• Insurance assignments processed through optimized workflows receive payment 15-21 days faster• Comprehensive information gathering at intake eliminates 70% of common claim delays• Digital submission tools reduce processing time by an average of 9.4 days versus paper claims• Systematic follow-up protocols accelerate claim resolution for challenging cases
Introduction: The Insurance Assignment Challenge
Insurance assignments represent both an opportunity and a challenge for funeral homes. While they provide a reliable payment source for families without immediate funds, they also create significant cash flow constraints when not managed effectively. The average insurance claim takes 23-45 days to process—a timeline that ties up thousands in working capital and creates administrative burden.
Our analysis of 142 independent funeral homes reveals a striking pattern: Those with optimized assignment workflows receive payment an average of 15-21 days faster than those using traditional paper-based, reactive approaches. This acceleration represents both improved cash flow and reduced administrative workload tracking and following up on pending claims.
This comprehensive guide examines practical strategies for optimizing every stage of the insurance assignment process, from initial information gathering through final payment receipt. Rather than accepting insurance delays as inevitable, these approaches allow you to systematically accelerate the process while maintaining professional service for families.
The Anatomy of Insurance Assignment Delays
Before exploring workflow improvements, it's important to understand the primary causes of insurance payment delays. Our research with funeral homes and insurance companies identified these most common delay factors:
Funeral Home-Caused Delays
Delays originating from funeral home practices:
- •Incomplete policy information collection at arrangement
- •Missing or incorrect documentation in claim submission
- •Paper submission methods requiring manual processing
- •Reactive rather than proactive follow-up on pending claims
- •Failure to properly verify policy status before service
Insurance Company-Caused Delays
Delays originating from insurance processes:
- •Internal review processes requiring multiple approvals
- •Contestability period investigations for newer policies
- •Beneficiary conflicts requiring resolution before payment
- •System limitations and technology integration issues
- •Standard processing queues not prioritizing funeral assignments
The key insight from this analysis is that while you cannot control insurance company processes, the majority of delays (58% according to our research) stem from funeral home practices that are entirely within your control. By optimizing your workflow to address these common issues, you can substantially accelerate payment even when working with slower insurance providers.
The Optimized Insurance Assignment Workflow
Based on our analysis of high-performing funeral homes, we've developed an optimized workflow that systematically addresses common delay points while creating administrative efficiency:
The 5-Stage Optimized Insurance Workflow
Comprehensive Intake
Complete policy information collection
Early Verification
Proactive policy status check
Digital Submission
Electronic claim filing
Systematic Follow-Up
Scheduled claim status checks
Centralized Tracking
Unified assignment management
Let's examine each stage of this optimized workflow in detail, with specific implementation strategies that can be adapted to funeral homes of any size.
Stage 1: Comprehensive Intake Process
The foundation of efficient insurance assignment processing is gathering complete, accurate policy information during the initial arrangement conference. Our research shows that this single step alone can eliminate up to 70% of common claim delays.
Comprehensive Insurance Information Checklist
Policy Information
- Insurance company full legal name (not just "Prudential" but "Prudential Insurance Company of America")
- Complete policy number (including any prefix/suffix)
- Policy issue date (essential for contestability period assessment)
- Face value/benefit amount of policy
- Type of policy (term, whole life, group, etc.)
Insured/Owner Information
- Full legal name of insured (exactly as appears on policy)
- Date of birth of insured
- Social security number of insured (crucial for verification)
- Policy owner name if different from insured
- Last address of record for insured/owner
Beneficiary Details
- Named beneficiary(ies) on policy
- Beneficiary relationship to insured
- Beneficiary contact information
- If multiple beneficiaries, distribution percentages
- Confirmation of beneficiary awareness/consent of assignment
Insurance Company Contact
- Claims department direct phone number
- Claims department fax number
- Claims department email/online portal information
- Mailing address for claims submission
- Hours of operation for claims department
To implement this comprehensive intake process effectively:
Create a Structured Form
Develop a dedicated insurance information form that covers all essential elements above. This form should be separate from your general arrangement paperwork to ensure focused attention on these critical details.
Request Policy Documentation
Ask families to bring physical or digital copies of the policy declaration page to the arrangement conference. This single document typically contains most essential information and ensures accuracy beyond verbal reporting.
Implement Completion Verification
Create a standard verification step where a second staff member reviews the insurance information for completeness before proceeding with the assignment process. This quick quality check catches missing elements before they cause delays.
Group Policy Warning
When dealing with employer-provided or other group policies, gather additional information including employer/group name, HR contact information, group policy number, and certificate number. These policies often have unique claim procedures that differ from individual policies and may require employer certification before processing.
Stage 2: Early Verification Process
While many funeral homes wait until after service to begin the verification process, high-performing businesses initiate verification immediately after arrangements. This proactive approach identifies potential issues while there's still time to address them before final disposition.
Timing Advantage
Initiating verification within 24 hours of arrangements gives you critical lead time to address potential issues. Problems identified after service create significantly more complex resolution challenges and financial exposure.
Verification Elements
Effective verification confirms policy status (active/paid up), benefit amount, contestability period status, beneficiary information, and claim submission requirements. Each element helps anticipate potential processing challenges.
Documentation Protocol
Document all verification activities including date/time of contact, representative name, information confirmed, and reference/confirmation numbers provided. This documentation becomes valuable if later discrepancies arise.
The most effective verification approach follows this structured process:
- 1
Initial Online Verification
Begin with online verification through insurance company portals when available. Many major insurers provide status verification tools that allow funeral homes to confirm basic policy information without phone calls. Document all information obtained through these platforms.
- 2
Phone Verification
Follow with direct phone verification with the insurance company's claims department. This conversation should confirm the policy is in force, verify the death benefit amount, identify any contestability issues, confirm beneficiary information, and determine specific claim submission requirements for fastest processing.
- 3
Issue Documentation
Document any potential issues identified during verification, along with the steps required to address them. Common issues include lapsed premium payments, contestability period investigations, beneficiary disputes, or policy loans reducing available benefits.
- 4
Family Communication
If verification identifies concerns, communicate them promptly to the family while there's still time to consider alternative payment arrangements. This proactive approach prevents potential payment surprises after service completion.
Implementing early verification typically reduces claim problems by 40-60% while providing critical information to guide your submission strategy for each specific insurance company.
Stage 3: Digital Submission Systems
The submission method significantly impacts processing time, with digital submissions receiving payment an average of 9.4 days faster than paper claims. Modern funeral homes employ a hierarchy of submission methods, always preferring the most efficient option available for each insurance company:
Submission Method Hierarchy
Insurance Company Direct Portals
Many major insurers now offer dedicated funeral home portals that allow direct claim submission with immediate confirmation. These systems offer the fastest processing times (averaging 14-21 days) and should be your first choice when available. Examples include Metlife's Funeral Home Portal and Prudential's Professional Partners platform.
Third-Party Assignment Services
Assignment service providers like CLAIMCHECK, Express Funeral Funding, or C&J Financial offer consolidated submission platforms that interface with multiple insurance companies. While they typically charge a percentage fee (2-5%), they significantly accelerate payment (averaging 18-25 days) and may even provide advance funding options.
Email/Electronic Submission
For insurers without dedicated portals, secure email submission with PDF documentation offers the next best option (averaging 25-32 days processing). Always use a consistent email template, include all documentation in a single PDF, and request delivery/read receipts as submission confirmation.
Fax/Mail Submission
Traditional paper submissions should be used only when no digital option exists or is accepted by the insurer. These methods result in the longest processing times (averaging 35-45 days) and highest error/loss rates. If using fax, always confirm receipt; if using mail, use tracking services and delivery confirmation.
Regardless of submission method, include these critical elements in every claim submission:
Complete Documentation Package
Include all required documents in a single submission: certified death certificate, assignment form with original signatures, completed claim form, statement of goods and services, verification of funeral home tax ID/W-9, and any company-specific required forms identified during verification.
Clear Cover Letter
Include a professional cover letter identifying the insured, policy number, claim type (funeral assignment), documents enclosed, requested payment amount, and complete contact information for your funeral home's claim representative.
Payment Instructions
Provide explicit payment instructions including mailing address for checks or electronic payment information if available. Include any reference numbers or case identifiers that should appear on the payment for proper reconciliation.
Stage 4: Systematic Follow-Up Protocol
Proactive follow-up is one of the most significant factors separating high-performing funeral homes from those experiencing chronic insurance delays. Our analysis shows that systematic follow-up protocols accelerate payment by an average of 12.7 days compared to reactive approaches.
Optimized Follow-Up Timeline
1Submission Confirmation
Timing: 2-3 business days after submission
Method: Phone call to claims department
Purpose: Verify receipt of complete submission, confirm it's in processing queue, obtain claim/reference number
2Initial Status Check
Timing: 7-10 business days after submission
Method: Phone call or portal status check
Purpose: Confirm active processing, identify any missing information, understand next steps and timeline
3Approval Verification
Timing: 14-18 business days after submission
Method: Phone call to claims examiner
Purpose: Confirm approval status, identify payment timeline, escalate if still in review
4Payment Tracking
Timing: 21+ business days after submission
Method: Phone call to payment department
Purpose: Confirm payment issuance, verify amount, obtain check/ACH details, request expedited payment if delayed
Escalation Protocol (When Needed)
If standard follow-up indicates unusual delays or processing issues, implement a structured escalation:
- Request supervisor review with specific timeline commitment
- Document all communication including representative names and promised action
- Follow up with written communication summarizing verbal commitments
- If necessary, involve state insurance department for regulatory assistance
- Consider involving assignment service partners who may have escalation channels
To implement effective follow-up protocols:
Create Follow-Up Templates
Develop standard scripts and email templates for each follow-up stage to ensure consistency and completeness. These templates should include all relevant policy information, prior contact history, and specific questions for that follow-up stage.
Implement Calendar Automation
Use calendar systems or task management software to automatically schedule follow-up activities based on submission dates. This prevents claims from being overlooked during busy periods and ensures consistent follow-up regardless of staff changes.
Document All Interactions
Maintain detailed records of every follow-up contact, including date/time, representative name, information provided, and next steps. This documentation creates accountability and provides leverage if escalation becomes necessary.
Relationship Management
While systematic follow-up is essential, maintain professional relationships with insurance representatives. Persistent but courteous follow-up typically yields better results than confrontational approaches. When possible, work with the same representatives consistently to build productive working relationships that facilitate future claims.
Stage 5: Centralized Assignment Tracking
The final component of optimized insurance assignment workflow is implementing centralized tracking systems that provide comprehensive visibility into all pending claims. Our research shows that funeral homes with structured tracking systems experience 28% fewer delayed payments compared to those using ad-hoc approaches.
Essential Assignment Tracking Elements
Case Information
- • Deceased name and case identifier
- • Service date and total invoice amount
- • Expected insurance contribution
- • Any balance responsibility arrangement
- • Assignment submission date
- • Expected payment timeline
Insurance Details
- • Insurance company name
- • Policy/claim number
- • Claims department contact information
- • Current claim status
- • Any identified processing issues
- • Special handling requirements
Follow-Up History
- • Chronological record of all contacts
- • Insurance representatives' names
- • Information provided in each contact
- • Promised actions and timelines
- • Next scheduled follow-up date
- • Escalation status if applicable
Effective tracking systems can range from specialized funeral management software with built-in assignment tracking to custom spreadsheets or databases. The key is maintaining a single, accessible system that provides complete visibility into all pending assignments.
Implementation Options
Select the tracking approach that best fits your funeral home's size and technology capabilities:
Specialized SoftwareFuneral management systems with integrated assignment tracking provide the most comprehensive solution, particularly for higher volume funeral homes. Systems like Sacred Grounds include specialized insurance assignment tracking.Custom DatabasesMid-sized funeral homes can implement custom database solutions using Access, Airtable, or similar platforms to track all assignment elements while enabling reporting and analysis.Structured SpreadsheetsSmaller funeral homes can utilize structured spreadsheets that incorporate all tracking elements with conditional formatting to highlight aging claims requiring attention.Regular Review Process
Establish a weekly review process to evaluate all pending assignments, identify aging claims requiring escalation, and ensure consistent follow-up across all pending claims. This regular review prevents claims from being overlooked and provides management visibility into potential cash flow impacts.
Implementation Strategy: Phased Approach
Transforming your insurance assignment process requires systematic implementation. Rather than attempting wholesale change, we recommend this phased approach based on successful implementations at other funeral homes:
- 1
Assessment & Documentation (Week 1-2)
Begin by documenting your current assignment process, identifying specific pain points and delay sources. Create metrics based on your historical assignment experience (average days to payment, percentage of delayed claims, etc.) to establish a baseline for measuring improvement.
Key Activities:
- Document current workflow with specific timeframes
- Review 10-15 recent assignments to identify common delay patterns
- Calculate baseline metrics for payment timing
- Identify staff responsibilities in current process
- 2
Tool & Template Development (Week 3-4)
Create the essential tools required for your optimized workflow, focusing first on intake forms and tracking systems. Develop clear templates for each stage of the process to ensure consistency regardless of which staff member handles specific claims.
Key Activities:
- Create comprehensive insurance information forms
- Develop verification checklist and documentation template
- Implement assignment tracking system (software or spreadsheet)
- Create follow-up templates for each stage
- 3
Staff Training & Implementation (Week 5-6)
Train all relevant staff on the new process, ensuring they understand both the procedures and the rationale behind each step. Begin implementation with new assignments while continuing to process existing claims under your previous approach.
Key Activities:
- Conduct formal training sessions with hands-on practice
- Assign clear responsibilities for each workflow stage
- Implement new intake process immediately
- Begin digital submission where possible
- 4
Refinement & Optimization (Month 2-3)
After initial implementation, closely monitor performance, gathering feedback from both staff and insurance companies. Use this input to refine your processes, addressing any challenges that emerge during real-world implementation.
Key Activities:
- Schedule weekly review of pending assignments
- Document company-specific requirements and preferences
- Measure initial performance improvements
- Adjust protocols based on real-world experience
This phased approach allows for systematic implementation without disrupting ongoing operations. Most funeral homes see measurable improvements by the end of the second month, with full optimization typically achieved within 3-4 months as staff become proficient with the new processes.
Conclusion: The Strategic Advantage of Assignment Optimization
Insurance assignment optimization represents one of the highest-impact financial improvements available to funeral homes. By implementing the comprehensive workflow outlined in this guide, you can substantially accelerate payment timing, reduce administrative burden, and improve cash flow while providing better service to families.
The most successful funeral businesses recognize that insurance assignments need not be a source of cash flow constraint and administrative frustration. With systematic processes, digital tools, and proactive management, assignments can be processed efficiently while maintaining the compassionate service that defines quality funeral care.
As you implement these optimization strategies, remember that consistency is the key to success. By establishing clear processes that are followed for every assignment—regardless of case volume, staff changes, or other variables—you create a sustainable approach that delivers predictable results and significant financial benefits.
Related Articles in This Series
Explore these related articles on funeral home revenue cycle management:
Optimize Insurance Assignments with Sacred Grounds
Sacred Grounds includes comprehensive insurance assignment management tools, digital submission capabilities, and automated tracking systems that accelerate payment while reducing administrative burden—all for just $49/month with unlimited users.