Why do you have to fill out W9 form to collect life insurance benefits from late husband?

You need to fill out a W-9 form to collect life insurance benefits because the insurance company is required to report the payout to the IRS as taxable income. The W-9 form provides your taxpayer identification number (TIN) to the insurer, allowing them to issue a 1099 form for tax reporting purposes. This process ensures compliance with tax regulations and helps prevent fraud.