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According to a study by Consumer Reports, 1 out of every 600 people is the beneficiary of an unclaimed life insurance policy with an average benefit of $2,000. Although life insurance companies make a proactive search for beneficiaries, they aren’t always successful. If you think you might be a beneficiary of an unclaimed life insurance policy, there are ways to track it yourself without waiting on the insurance company.
While it can require some detective work and time to do the research, finding an unclaimed life insurance policy could make the time and expense worth it. If you have your own life insurance policy, make it easier for life insurance companies to find your beneficiary by providing as much identifying information as possible, such as the beneficiary’s date of birth, full legal names and social security number.
How to find an unclaimed life insurance policy
Many people take time to set up life insurance policies to ensure their loved ones are cared for after their passing, in which case a common question might be, “How do I find out if I am a beneficiary on a life insurance policy?” If you suspect a relative who passed away may indeed have purchased a policy and named you as the beneficiary, try these steps to conduct an unclaimed or lost life insurance policy search. You will need the full legal name of your relative, and it helps to have their date of birth, Social Security number and any former addresses. Follow these steps to maximize your chances of finding an unclaimed life insurance policy.
Search for insurance policy paperwork
You may be able to find insurance policy paperwork, including premium payment receipts or bank statements showing an automatic deduction, more easily if the person passed away recently. Also check address books or electronic devices (if you have access) for any insurance-related transactions or communication.
If you’re the executor of the deceased’s estate, check any safe-deposit box and go through any personal files. You could also visit the bank of the deceased to request paper statements if you have Power of Attorney. This will allow you to find out who they paid premiums to if you don’t have access to their online account.
Turn to a missing policy locator
The National Association of Insurance Commissioners’ Life Insurance Policy Locator Service and similar services allow consumers who believe they are the beneficiary of a life insurance policy to submit a life insurance policy search by name and request to have insurers check their files. These systems can serve as an unclaimed life insurance database for individuals that need a starting point for retrieving policy information.
Search for the insurance company
If you find evidence of a policy and can identify the insurance company, most of your work is done. Beneficiaries who can’t locate the insurance company listed on a policy should contact their state insurance department.
Meanwhile, if you do have the insurance company, follow its steps to file a claim. Provided you give all the information and the insurance company approves your claim, the company will typically provide payment in a timely manner.
Make sure you’re looking in the correct state
You need to know where the policy was purchased. The state where the decedent passed may not be the same state they purchased the life insurance policy. Check in any prior states the person may have lived in to find an unclaimed life insurance policy.
If the insurance company went out of business, the state insurance commissioner should have records of what happened to the policies.
Check with rating services
If you’ve found the insurance paperwork but can’t seem to find the insurance company itself to track an unclaimed life insurance policy, you may want to check with rating services to find it. An insurance rating agency, such as AM Best, could help you track insurers, including those that are defunct.
Search for a financial connection
A financial connection would be a professional who handled your relative’s finances. This could be an accountant, financial planner or insurance agent. A professional working in financial services would likely have knowledge of a life insurance policy, and may even have a copy of it to prove you’re the beneficiary and provide policy details. You’ll likely have to provide information to verify your identity or prove that you’re the executor or have Power of Attorney for the deceased before the financial professional releases the information.
Search unclaimed property files
MissingMoney.com, a database endorsed by the National Association of Unclaimed Property Administrators, allows you to search for unclaimed property in most states. To start the search, all you need is the name, city and state where the deceased lived and you can conduct the research online.
Contact the deceased’s former employers
Most life insurance policies purchased through employers are term policies that provide coverage only during the time of employment, but sometimes an individual will continue the policy after leaving the company. You might want to check with former employers, labor unions or professional associations to see which company they had life insurance with so you can contact the insurer directly.
Many companies won’t provide specific information pertaining to employees outside of when they worked there and their position, so asking what life insurance company they use is a way around this.
Pay for a search of the MIB database
The MIB (which once stood for Medical Information Bureau) is a cooperative database created by life insurance companies to keep track of insurance applications. Although an MIB database search costs $75, it can be money well spent if you are certain there is an unclaimed life insurance policy out there.
Meanwhile, once you find the insurance company, contact them to see if the policy is still active. If it is, the insurer has steps you can follow to file a claim. It’s vital to follow these directions closely as doing so reduces the chances of your claim being denied or delayed.
How to prevent unclaimed life insurance policies
While it is too late for deceased relatives to provide you with information on their insurance policies, your relative may have offered a good learning opportunity so the next generation will be spared from hunting down unclaimed life insurance.
If you are covered by life insurance, tell your family members that you have a policy so they don’t miss out on your death benefit if you pass away. Provide details about the policy, like the insurance company, policy number and coverage amount. Give your insurance company as much detail as possible about your beneficiaries, including names, addresses and Social Security numbers, to make it easier for the insurance company to find them. It’s also a good idea to store life insurance paperwork in a secure place so family members have access to it when they need it.
Frequently asked questions
After a certain number of years as defined by each state, insurance companies must turn over unclaimed life insurance money to the state government. Some states are placing pressure on life insurance companies to pay out unclaimed death benefits. Because of this, insurance companies routinely use Social Security data to check to see if policyholders are still alive. When they find out one passed away, they’ll do research to try to find the beneficiaries.
How long a beneficiary has to claim a life insurance policy may vary by state or life insurance company. Once a claim is filed, the insurance company must review the claim within 30 days in most states. By the end of the 30 days, the insurer will either have to ask for more information, or approve or deny the beneficiary claim.
To find out if a life insurance policy is valid, you can check with the National Association of Insurance Commissioners. Using the NAIC Life Policy Locator, you can submit a request with the legal name, date of birth, social security number and date of death for the deceased person to find a life insurance policy or annuity.