How to Track Unclaimed Life Insurance: Useful Tips

How to Track Unclaimed Life Insurance - Useful Tips

Finding life insurance paperwork for deceased relatives might be difficult, the reason being that there are no national databases of all life insurance policies available at this time. Nevertheless, with a little effort, you can successfully track down the paperwork.

In this article, we shall share with you some guidelines to make the search for your unclaimed insurance effective. Studies have shown that one out of every 600 persons is the benefactor of an unclaimed life insurance policy with a payout of $2,000 on average. A Life Insurance beneficiary is the person who receives the proceeds from your life insurance policy when you pass away.

According to Life insurers, they paid about $747.4 billion in benefits in 2020, and have continuously made concerted efforts to find the rightful owners of unclaimed insurance policies, while some companies have whole offices dedicated to that purpose.

However, state governments enjoin them to take more practical approaches to ensure beneficiaries of Life Insurance policies are located as at when due. As a result, a handful of states have mandated insurance carriers to agree to pay $7.4 billion in unclaimed death benefits, while nothing less than half the states have formulated policies into law, requiring insurers to conduct a life insurance policy search using the Social Security number to find beneficiaries of unclaimed death benefits.

Hunt for the Life Insurance Policy Document

In case the death occurred recently, be on the lookout for premium payments and policy-related papers, as well as checking through the address books, mails, and bank statements for insurance-related transactions.

Look Up the Life Insurance Firm

Usually, if you can uncover documentation of a policy and can identify the insurance firm, the bulk of your work is done. All you need to do is follow the company’s instructions for filing a claim and with all the documents intact, the insurance provider approves your claim, and you are paid promptly.

However, if this is not the case and you can’t seem to locate the company on the policy you found, contact your state’s insurance department as they often have records of companies who went out of business.

Reach Out to the Deceased’s Previous Employers

The majority of life insurance policies obtained through employers are term policies, which offer coverage only during the period of employment; however, some people keep their policies after they leave the firm. Check with former employers, labor groups, or trade bodies to determine who they had the policy with so you can contact the firm directly.

Note that most employers would not give out detailed information about a former employee, so cut the long story short by just asking what insurance provider the company uses.

Contract a Policy Locator

If you are convinced that you are a beneficiary of the policy, it will be of immense help to you to contact any Life Insurance Policy Locator Service and ask for an insurance policy search by name and ask that they check their files. Individuals who require a starting point for retrieving policy information might use these platforms as an unclaimed policy database.

Although it is too late for the departed relatives to furnish you with information on their insurance policies, you should adhere to the lesson inherent in this and save your family the stress of looking for unclaimed death benefits, by keeping them in the loop about the policy and providing adequate information about how to locate your next of kin or possible beneficiaries.

The Author

Oladotun Olayemi

Dotun is a financial enthusiast who specializes in first-in-class financial content, including crypto, blockchain, market, and business, to educate and inform readers.