Does anyone know how life insurance pays out a beneficiary?

Give the deceased’s family a call, email or send a hand written note. Express your sympathy to them and share a nice memory about your friend. You can do this tactfully and with respect. Don’t approach it with, “Hey, I think there's some money in this for me,”. Mention that at one point, you were told you were a beneficiary on an insurance policy they had. It was just a comment, but you’d still like to know. Ask for the name of the insurance company and then write to the company. Offer to pay for a copy of the death certificate because you will need it. Then thank them very much and perhaps send a small gift as further thanks.

There is no sense in wondering and speculating. This is the only way you’ll find out.

https://www.iii.org/article/how-can-i-locate-lost-life-insurance-policy

I wouldn't count on anyone notifying you. I have accounts in a few banks that are POD to my daughters, and the banks have already told me that they do not notify. So I am sure to continually pound it in to their heads that this money is here. I suppose eventually Uncle Sam would knock on their doors about not declaring dividends, but still................
If you suspect there is an account, yes, do call the Company and do say the person's name, that they are deceased and that you believe you are a beneficiary. They will check. If you are they will walk you through the process. If you are not it is unlikely they will give you a lot of other information.
Are you going currently through the property of the deceased? You can never tell where some folks put this stuff and be certain not to throw anything that might be a safe deposit key.

If you are a beneficiary and can get the name of the insurer and a death certificate, payment should be very prompt. I have an insurance agent friend. He said life insurance is the most cut and dried procedure for payout. No pulse? Here's a check. No adjuster or BS.

ASK THE FAMILY. It's not rude if you phrase it correctly. "So and so told me that I was a beneficiary of their life insurance. Can you help me find out?"

Who told you u were beneficiary? That person should know the insurance company.

I agree that the Executor or Administer of the estate should be able to give you this info. Hopefully the principle has their records in order. You will need to have the policy #. Then call and talk to a representative. That person will confirm you are beneficiary or not. If you r not, they will not tell u who is. If you are, they will need proof you are who ur.

Why not just call a life insurance company and ask them what their procedure is? We are all speculating here.

That’s the thing. I don’t know. I was told I was one of their beneficiary’s but I don’t know the insurance co.

As the PR of various estates, I sent each insurance company a letter, included a death certificate and asked them who the beneficiary was, after that the beneficiary filled out the claim forms and secured the funds.

If you know who the insurance company is, contact them to ask what their procedure is for finding out if you are the beneficiary of the policy. I’m not sure if they will divulge the information to you, though, if you don’t have any record of the policy. If you don’t have Power of Attorney for this person, they probably won’t tell you. You may need to have the person who does have POA find out.