Ideally, life insurance beneficiaries have all the information they need to make a claim. Unfortunately, that’s not always the case: more than a billion dollars have gone unclaimed in the U.S. because beneficiaries don’t know they’re listed on a policy or because they can’t find proper documentation. A
In 2011, the National Conference of Insurance Legislators created the Unclaimed Life Insurance Benefits Act, which standardized procedures for unclaimed policies and required insurers to periodically review the Social Security Administration’s Death Master File database to identify deceased policyholders and their beneficiaries to identify.
However, it is not a foolproof method and millions of dollars in benefits go unpaid each year. Fortunately, there are several ways to determine if you are missing the life insurance payments you are owed.
What we will cover
Collect records to start your search
To search for a specific life insurance policy, you will need the person’s official death certificate, which includes their full name, Social Security number, and date of birth and death. A
If you find a policy, you will also need your driver’s license, passport, or other government-issued ID to verify your identity when submitting a claim.
Review financial documents and personal contacts
If you have an idea of who named you as a beneficiary and which insurer they had a policy with, start your search there. If not, reviewing financial records such as income tax returns and bank records may provide clues. (A policy could even be stored in a safe.)
If your loved one was employed at the time of their death, their company’s human resources department may be able to tell you whether they were employed Group life insurance or supplemental life insurance.
Friends, family, colleagues, previous employers and even clergy can also be a useful resource – or at least point you to lawyers, accountants or other professionals with relevant information.A
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Try the NAIC Life Insurance Policy Locator Service
To use the service, you must have the legal name, social security number, and dates of birth and death of the suspected policyholder.
Information submitted to the NAIC is forwarded to participating insurance companies, which search their records for open policies. The process can take several months. A
Check with your state’s unclaimed property department
Life insurance companies use Social Security Administration records to determine whether a policyholder has died. They also search for beneficiaries, but if they are unsuccessful, the funds are declared unclaimed or “dormant.” A
Each state has different rules about how long it takes for a policy to be considered dormant The duration is usually three to five years. (In Arizona and North Dakota, the dormant period is one year.)
If it’s been that long, you can search for unclaimed funds in the state where the deceased last lived or purchased their policy.
Other Ways to Search for Unclaimed Policies
The National Association of Unclaimed Property Administrators The Missing Money website allows you to search multiple government databases at once for unclaimed funds – not just insurance payouts, but also funds from utilities, retailers and others. It is a free service and users can begin the claims process immediately.
Several life insurance companies have online policy search tools, including John Hancock, MetLife, and New York Life.
If you think you might benefit from a U.S. military veteran’s policy, the U.S. Department of Veterans Affairs has a searchable database.
How to file a life insurance claim
If you discover that you are the beneficiary of a life insurance policy, you will need to file an application to receive your payment. You will need multiple copies of the person’s death certificate. You can get this from the registry office in the state where the person died.
You can either work with an insurance agent to contact the insurer or do it directly yourself. In addition to the death certificate, you will likely need to provide identification and personal information to complete the application form before submitting it online or by mail.
You’ll also need to decide how you want to receive your benefits – in most cases, either as a lump sum or as a a pension that is paid regularly from an invested account.
There is no deadline for filing a life insurance claim, but the sooner you file, the sooner you will receive a payout. In most states, insurers have up to 30 days to review a claim and remit payment.
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Bottom line
If you believe someone has named you as a beneficiary on their life insurance policy, there are easy-to-use online tools that can help you find it. In some cases, you may first need to gather documentation and speak to a family member or representative.
Editorial note: The opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial team alone and have not been reviewed, approved or otherwise endorsed by any third party.