What do you do if you suspect that a loved one had a life insurance policy but don’t know what it contained or where to find it? Let’s review who can file a life insurance claim, how to file a claim, how to locate a life insurance policy, and what happens to unclaimed benefits.
Who Can File a Life Insurance Claim and How
The process of filing a life insurance claim can be lengthy, however, ensuring you have the correct documentation can accelerate the process. Family members of the deceased, estate lawyers, trustees, and even funeral homes can file a life insurance claim, but only the beneficiary can collect the death benefit. To file a claim, you must locate documents related to the life insurance policy, the deceased, and the insurance beneficiary. While this can vary by insurer, here is a list of some document types you might need.
- Insured’s date of birth and date of death
- A copy of the death certificate
- The insured’s Social Security number
- The policy number for the life insurance policy
- Beneficiary’s information such as state-issued ID and Social Security number
Once you have all of this information, you’ll need to reach out to the insurance company to submit your claim. After submitting your claim, the life insurance company will validate that the information is correct before issuing the death benefit.
What Happens to Unclaimed Benefits?
Life insurance companies use the Social Security Administration’s Death Master File to determine if a policyholder is deceased. If this is the case, the insurance company will conduct a search for the policy beneficiary. If the search is unsuccessful, the insurance company will transfer the death benefit to the state in which the insured lived at the time of death. Until the rightful owner or heir claims the money, the funds are held indefinitely, with tens of millions of other dollars in unclaimed benefits.
Locating Unclaimed Benefits
If you believe your loved one had a life insurance policy, but you aren’t sure where to locate information about the policy, there are a few ways you can go about your search.
Start your search by going through the deceased’s personal files and paperwork. Pay close attention to the following documents, as they could hold the information you are looking for:
- Bank records – If there was an insurance policy, you would likely find monthly payments made to the insurer in their bank statements.
- Member associations – If your loved one was a veteran or part of a union, that association might have offered a life insurance policy.
- Pay stubs – Many employers offer a group life insurance policy. If your loved one was still employed at the time of their death, consider reaching out to their employer to see if they had coverage.
- Mail – If there is a life insurance policy, there’s a good chance your loved one was receiving statements or monthly newsletters from the life insurance company.
- Tax returns – Search for interest income from a policy in the deceased’s tax returns.
- Safety deposit box– If your loved one had a safety deposit box, it might contain valuable documentation about their life insurance policy and final will.
If you have already searched your loved one’s personal files and come up short, you can turn your search online. There are several websites and databases that are dedicated to helping individuals locate lost life insurance policies:
- National Association of Insurance Commissioners – The NAIC policy locator assists families in finding a deceased relative’s life insurance policy. When a request is received, the NAIC will ask participating companies to search their database for a policy.
- Department of Insurance – You can search for a life insurance policy through your state’s DOI. Not all states have a DOI, so try checking the link to see if this service is offered where you live.
- National Association of Unclaimed Property Administrators – NAUPA has a tool on their site that allows you to search for unclaimed money by state.
Be Prepared With Americo Senior Life
Ensuring you have all of your paperwork in order is crucial when preparing your estate. Make sure your beneficiaries are informed about your policy and where they can find documentation. For easier access to your life insurance policy, consider storing them in a safety deposit box and give access to your beneficiary.
Americo Senior Life is here to help seniors with all of their life insurance needs. With a 30-day satisfaction guarantee, if you aren’t happy with the policy, you can cancel it and receive a refund. Go online for your free quote, or check out our resources page for more information about senior life insurance.