Do you know what to do about finding a life insurance policy? You may not think much about this, but for many people, it’s a daily occurrence. They lose a loved one and learn they have a life insurance policy, but they can’t find it. They have no idea which life insurance company wrote the document.
This happens a lot. In fact, more than a quarter of all life insurance death benefits are never claimed. That’s amazing. Policies have been paid for over the years in the event of the insured’s death to protect their family and now no one has any idea where the lost life insurance policy is.
Under federal law, all unclaimed death benefits are transferred to a trust until they are claimed at all. Keep in mind that last year nearly $23 billion was invested in the fund, with only $1 billion being claimed.
What can you do if you find out that a life insurance policy is missing?
1. If you have access to their personal records, check old bank statements or canceled checks to see if they have paid any insurance companies.
2. Did they have a personal attorney or accountant who might have been aware of any outdated policies?
3. Talk to your former employer about any group life insurance policy that may be in place.
4. Contact the medical information office. They keep track of all medical records required by insurance companies for the past seven years. So, if they take out the policy within this time period, the MIB will most likely know about it. You can find more information about it online.
5. Look at the mail that continues to be delivered after the person dies. If the policy is still paying for it, you will see highlighted notifications.
6. Look at the income tax returns to see if dividends have been claimed on any life policy.
There is no time limit for claiming the benefits of any lost life insurance policy on which you are the beneficiary. 25 years can pass and the company will still pay you the proceeds.
Finding a lost life insurance policy may not be the easiest thing to do, but with patience and a bit of editorial work, you should be able to track it down in a short amount of time.
All rights reserved worldwide. Reprint rights: You may reprint this article as long as you leave all links active and do not modify the article in any way.