You submit a claim form and a copy of the death certificate.
Then the insurer usually pays the claim within a few weeks.
But what if you dont know whether your family member had a life insurance policy?
Or what if you cant locate the policy documents?
If no one notifies the company of the insured persons death, its possible that money could go unclaimed.
Wondering if you could have lost life insurance money out there?
Keep reading to learn how to start your search.
How Do Life Insurance Companies Locate Beneficiaries?
Life insurance companies arent automatically notified when someone dies.
They only find out the insured person has died when the beneficiary files a claim.
If no one notifies the insurer of the persons death, itll continue charging premiums.
Sometimes when the premiums go unpaid, the company may deduct that money from the policys benefits.
However, its becoming increasingly rare for death benefits to go unclaimed.
If their search identifies someone who has died, they must attempt to locate the beneficiary within 90 days.
Not all states have adopted the Unclaimed Life Insurance Benefits Act, but most major insurers follow its recommendations.
No Interest Til Almost 2027?
Remember: Theres no deadline for claiming that money.
But its a lot simpler to get your benefit if you file a claim in a timely manner.
you could also look for policy documents wherever they kept other financial documents, like tax returns.
Also, check with any unions or professional associations the person belonged to.
you might also use the tool to find otherunclaimed money, like forgotten paychecks and old security deposits.
Or theyll conduct an investigative search and charge you a percentage of any money they recover.
The good news is, its easily avoidable.
The most obvious thing you might do is tell the person youve named as a beneficiary about the policy.
Let them know the name of the company and where you keep policy documents.
That way, they can submit a claim immediately if you die during the covered period.
Fortunately, regulations and modern technology have made it harder for life insurance benefits to get lost.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
She writes The Penny Hoarders Dear Penny personal finance advice column.
Send your tricky money questions to[email protected].
