{"id":367,"date":"2021-03-22T11:00:00","date_gmt":"2021-03-22T18:00:00","guid":{"rendered":"https:\/\/easeenet.com\/blog\/?p=367"},"modified":"2021-06-11T15:29:29","modified_gmt":"2021-06-11T22:29:29","slug":"unclaimed-life-insurance-payout-how-to-find-lost-death-benefit","status":"publish","type":"post","link":"https:\/\/easeenet.com\/blog\/unclaimed-life-insurance-payout-how-to-find-lost-death-benefit\/","title":{"rendered":"Leaving money on the table: Do you have an unclaimed life insurance payout? Here’s how to track it down."},"content":{"rendered":"\n

By Rachel Sommer .<\/sup><\/strong> March 22, 2021<\/em><\/p>\n\n\n\n

Each year, billions<\/em> of dollars in life insurance benefits go unclaimed. In fact, the Florida Office of Insurance Regulation reported $7.4 billion in unclaimed benefits<\/a> in 2016. This happens because beneficiaries can\u2019t find their deceased loved ones\u2019 policies, or in some cases may not even know the policies exist. Many people are entitled to unclaimed life insurance money, or the \u201cdeath benefit<\/a>,\u201d without even knowing it. Unclaimed life insurance policies can happen for a few reasons.<\/p>\n\n\n\n

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The most common reason why life insurance policies go unclaimed is that the beneficiary listed on the policy is completely unaware they are named on the policy. Also, some life insurance policy holders name a beneficiary but either leave the contact information incomplete or do not provide any contact information, which means the insurance company can\u2019t track down the beneficiary.<\/p>\n\n\n\n

Another reason why life insurance policies don\u2019t get claimed is that the insurance company isn\u2019t made aware the policy holder passed away in the first place. Typically, the beneficiary is responsible for notifying the company of the policyholder\u2019s passing, which initiates the claim process of receiving the death benefit. Communicating with family members about their life insurance and putting a comprehensive plan in place ahead of time is the best way to avoid lost policies for your next of kin. Easeenet<\/a> makes it easy to securely store your login credentials for your life insurance policy, as well as any relevant policy documents, and seamlessly transfer everything to your next of kin.<\/p>\n\n\n\n

What is the death benefit? <\/h2>\n\n\n\n

The death benefit, or life insurance payout, is the amount of money you receive from someone\u2019s life insurance policy. It is tax free and can be used however you like. If a death benefit is not claimed by the beneficiary, the insurance provider is obligated to turn the it over to the state in which the policy was purchased as \u201cunclaimed property.\u201d<\/p>\n\n\n\n

How to locate unclaimed life insurance policies<\/strong><\/h2>\n\n\n\n
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When purchasing a life insurance policy, you\u2019re legally required to name a beneficiary. However, some people put incomplete or incorrect information. If you\u2019re the beneficiary for someone\u2019s life insurance policy and that person has passed away, the insurance company may be trying to notify you so it can give you the funds. If you are certain there is a claim, contact the insurance provider directly as your first course of action.<\/p>\n\n\n\n

There\u2019s no database for unclaimed life insurance which makes searching for a policy often difficult. However, don\u2019t fret there are a number of ways to track down an unclaimed life insurance policy.<\/p>\n\n\n\n

Check through files & physical documents first<\/h4>\n\n\n\n

First, look through the person\u2019s insurance documents and see if you can find anything about a life insurance policy. You should check desk drawers, a safety box or file cabinet. If you can\u2019t find any information about a life insurance policy, call the deceased\u2019s home or auto insurance company and see if there is any information on file. With Easeenet<\/a>, you can securely store all of these files easily in a folder of your choosing, and your next of kin can access the information they need from any device, anywhere.<\/p>\n\n\n\n

Check bank statements<\/h4>\n\n\n\n

See if any checks or automated payments have been made out to life insurance companies over the years.<\/p>\n\n\n\n

Contact financial advisors<\/h4>\n\n\n\n

Present or prior attorneys, accountants, investment advisors, bankers, business insurance agents\/brokers and other financial professionals might have information about the deceased\u2019s life insurance policies.<\/p>\n\n\n\n

Contact previous employers<\/h4>\n\n\n\n

The deceased person may have had group life insurance through a past employer. Former employers maintain records of past group policies.<\/p>\n\n\n\n

Check the mail<\/h4>\n\n\n\n

For the year following the death of the policyholder, look for premium notices or dividend notices. If a policy has been paid up, there will be no payment notices due; however, the company may still send an annual notice regarding the status of the policy or notice of a dividend.<\/p>\n\n\n\n

Review income tax returns<\/h4>\n\n\n\n

Life insurance companies pay interest on accumulations on permanent policies and charge interest on policy loans. Look over the deceased\u2019s tax returns from the past two years to see if there is interest income from and interest expenses paid to life insurance companies.<\/p>\n\n\n\n

Contact state insurance departments<\/h4>\n\n\n\n

There are numerous free search services for residents looking for lost policies. The National Association of Insurance Commissioners (NAIC) has an online tool called the \u201cLife Insurance Company Location System<\/a>\u201d to help you find state insurance department officials who can help to identify companies that might have written life insurance on the deceased.<\/p>\n\n\n\n

Check with the state\u2019s Unclaimed Property Office<\/h4>\n\n\n\n

If a life insurance company knows that an insured client has died but can\u2019t find the beneficiary, they are obligated to turn the death benefit over to the state in which the policy was purchased as \u201cunclaimed property.\u201d If you know where the policy was bought, you can contact the National Association of Unclaimed Property Administrators<\/a> to see if it has any unclaimed money from life insurance policies belonging to the deceased.<\/p>\n\n\n\n

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Search the MIB database<\/h4>\n\n\n\n

There is no central database of policy documents, but there is<\/em> a database of all applications<\/em><\/a> for individual life insurance processed since January 1, 1996. As a disclaimer, there is a fee for each search and many searches are not successful.<\/p>\n\n\n\n

How to prevent losing a life insurance policy<\/h2>\n\n\n\n

In a scenario like this, prevention is key to protect your next of kin from added stress and struggle during their grieving period. If you have a life insurance policy, make sure your beneficiaries know about it. Keep relevant details in a safe place, like your insurance company\u2019s name and your policy number, so it\u2019s easily accessible. Easeenet<\/a> makes it effortless to keep your login credentials up to date so your next of kin can log in directly to access what they need, and has secure, customizable folders to keep your documents safe and organized for your next of kin. If you\u2019re not storing your login credentials with Easeenet, make sure to keep your records updated manually! Every year, review your policy documents to ensure that your beneficiaries are up to date, and their contact information is accurate.<\/p>\n\n\n\n

What to do if the insurance company changes<\/h2>\n\n\n\n

Occasionally insurance companies change names or merge with another provider. If you find unclaimed life insurance and the company no longer exists, don\u2019t fret, you can still get in contact with the company. Get in touch with your state commissioner\u2019s office and explain the situation. It can help you figure out who to contact about the life insurance policy and how to file a claim with the new company.Searching for an unclaimed life insurance policy isn\u2019t easy, but it is possible. Following the steps outlined above is the best way to find a lost policy. For the future, make sure you and your family members communicate about life insurance coverage to ensure future policies don\u2019t get lost. Using an online organization tool like Easeenet is a great way to keep track of login information and documents. With Easeenet, you can also designate a legacy contact so they get seamless access when they need it, from any device, anywhere. Get started today with our free trial.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The death benefit, or life insurance payout, is the amount of money you receive from someone\u2019s life insurance policy. Find out how to locate unclaimed life insurance policies.<\/p>\n","protected":false},"author":5,"featured_media":371,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[14],"tags":[73,6,72,70,71,28,15],"_links":{"self":[{"href":"https:\/\/easeenet.com\/blog\/wp-json\/wp\/v2\/posts\/367"}],"collection":[{"href":"https:\/\/easeenet.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/easeenet.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/easeenet.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/easeenet.com\/blog\/wp-json\/wp\/v2\/comments?post=367"}],"version-history":[{"count":4,"href":"https:\/\/easeenet.com\/blog\/wp-json\/wp\/v2\/posts\/367\/revisions"}],"predecessor-version":[{"id":552,"href":"https:\/\/easeenet.com\/blog\/wp-json\/wp\/v2\/posts\/367\/revisions\/552"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/easeenet.com\/blog\/wp-json\/wp\/v2\/media\/371"}],"wp:attachment":[{"href":"https:\/\/easeenet.com\/blog\/wp-json\/wp\/v2\/media?parent=367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/easeenet.com\/blog\/wp-json\/wp\/v2\/categories?post=367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/easeenet.com\/blog\/wp-json\/wp\/v2\/tags?post=367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}