Unclaimed Life Insurance - Unclaimed Life Insurance Benefits

Unclaimed life insurance benefits do not disappear, they remain in force, waiting for the beneficiary to collect on them. Do you think that you may have unclaimed life insurance benefits waiting for you? Initiating an unclaimed life insurance search is a relatively straightforward process, but first it is important to understand what happens to a life insurance when someone dies.

Is the insurance term or whole life? If the insurance was term, then any unclaimed life insurance must be collected before the end of the term. If the death occurred after the end of the term policy, there will be no unclaimed life insurance to collect. If the insurance policy was whole life, there are several things that can happen. If the policy holder made insurance payments up to the time that he/she passed away, the policy is paid up and the death benefit will be paid in full. If the policy holder stopped making payments, allowing the policy to lapse, there are two options available to the insurance company. They can assign the policy extended term status. This means they use the cash value of the life insurance policy to buy a term life insurance policy. The term policy will be for the same amount as the original whole life policy. The term will extend for the amount of time that the cash value will allow. The insurance can also place the policy in what is known as reduced, paid up status. This means that the policy remains in effect, but the amount of the death benefit is reduced. Either of these options makes it possible to collect unclaimed life insurance.

What happens if no one notifies the insurance company of the death? The insurance company will contact the policy holder by mail to determine why payments have stopped, but, unfortunately, if no one notifies the insurance company that the policy holder is deceased, the policy will lapse.

How do you find unclaimed life insurance?

What should you do if you believe that you or someone in your family may have unclaimed life insurance benefits? An unclaimed life insurance search is a straightforward task, but does require patience.

• Check with the state where the insured lived. Unclaimed life insurance is sometimes turned over to the unclaimed property division of the state.
• Check the financial records of the deceased. Look for canceled checks or through a check register for the name of insurance companies, and then give them a call.
• Check incoming mail. Insurance companies will make repeated attempts to notify a policy holder who does not make a payment.
• Check with the deceased's past employers. Often life insurance is offered through a company policy.

If all else fails, contact the Medical Information Bureau. They have a database that goes back over a decade and reports medical information inquiries. Life insurance companies typically request medical information when they write new policies. This information, while not free, will provide you with the name of any company that inquired about the deceased medical records.