This undergraduate thesis provides a detailed analysis of life insurance, with a special focus on the process, challenges, and issues related to claims processing in life insurance. Life insurance arises from the need for protection against unforeseen events such as death, illness, and property loss. This industry faces a range of challenges, including technological advancements and more precise risk assessment, increased life expectancy, and changes in regulation. The claims processing process in life insurance involves contacting the insurer after an insured event, gathering information, assessing claims, and disbursing compensation. The thesis analyzes the problems and challenges that policyholders often encounter. This includes lengthy delays in payment, complex communication, requests for additional documentation, and legal disputes, which are not in line with the fundamental purpose of insurance. To restore policyholders' trust, it is crucial to increase transparency, simplify procedures, and ensure prompt and fair claims processing. Through collaboration among all stakeholders, it is possible to create an insurance industry that serves as a reliable mechanism for the financial protection of policyholders.