How To Find and Claim Unclaimed Life Insurance Policies (2024)

An unclaimed life insurance policy is one that a beneficiary hasn’t claimed after the death of the insured person. In such cases, a state’s unclaimed property division may hold the policy until a claim is made. It’s also possible that an insurance company will cancel an individual policy if there is no activity for a certain period.

When settling up an estate or wrapping up a person’s final expenses after they pass away, one of the first things loved ones should do is locate all life insurance policies and contact the insurance agent(s) or financial services company used by the insured. Waiting to communicate with an insurance company — or failing to do so — could mean losing thousands of dollars in benefits and cash value. This is money a beneficiary can use to cover funeral expenses or financial obligations left behind by the deceased.

Unclaimed life insurance policies are treated differently than other unclaimed property. This is why beneficiaries have a limited amount of time to claim their benefits (and collect the cash value). Check your state’s laws for timetables and processes.

Unclaimed life insurance policies can be hard to locate and collect, particularly when dealing with the estate of someone who is dead. But there are steps you can take to make the process smoother and increase your chances of success.

It’s important to thoroughly search for paperwork left behind by the deceased. Look for tax records, bank statements, policy numbers, safe deposit boxes, credit card statements, emails, wills, trusts and all other financial records that could contain information about their life insurance policy. If you find relevant documents, contact the insurer right away.

If you can’t find any paperwork related to an insurance policy, reach out to the deceased’s former employer. Ask human resources if the insured person had any life insurance policies as part of their benefits package when they worked there. Also, search online databases, such as the NAIC’s Unclaimed Life Insurance Benefits Locator (ULIBL) — although not all insurers provide data for this database.

You can also contact your state’s insurance department or others who specialize in estate planning, employers or financial advisors who previously worked with the deceased or even hiring a private company specialized in locating unclaimed policies and collecting death benefits for beneficiaries. If you believe the policyholder had a highly valuable insurance policy, you might consider hiring a private investigator to dig deeper on your behalf.

Unclaimed life insurance policies occur for a variety of reasons. Among the most common ones is when policyholders or beneficiaries misplace — either annual statements and invoices or the policy itself. Another reason is when an insurance company goes bankrupt before a beneficiary makes a claim. In some cases, bankruptcy proceedings can take years. If beneficiaries have moved away or passed away during this time, their claim may go unnoticed.

Premium payments being stopped before the death of an insured person can also lead to unclaimed life insurance benefits. It’s also possible for life insurance policies to go unclaimed because a beneficiary dies before the insured person does. Sometimes, the policyholder gives the insurance company the wrong address for the beneficiary.

Reclaiming an outstanding life insurance policy can be a complex process. It almost always requires patience and diligence, but it’s possible to recover the death benefits and ensure that the deceased’s wishes are respected. You’ll want to reach out to the National Association of Unclaimed Property Administrators (NAUPA) for a full list of requirements for your individual life insurance policy claim.

The following steps provide guidance on how to go about reclaiming unclaimed life insurance policies:

1. Gather necessary documentation and contact information for the insurance company. Before beginning the process of reclaiming an unclaimed policy, it’s important to have all the necessary documentation and contact information for the insurance company. This includes paperwork such as copies of death certificates, beneficiaries’ birth certificates, Social Security numbers, tax returns, passports, driver’s licenses and other legal documents.
2. Inquire about policies and provide proof of identity. With all the right information in hand, reach out to the insurer with a request for information on any potential policies they may hold. The company may require proof of identity and/or a copy of the deceased’s death certificate before providing any information regarding death benefits.
3. Provide additional information from third-party sources. Depending on your circ*mstances and the type of policy involved, you may be required to provide additional information or documentation from financial institutions or other third-party sources.
4. Fill out the paperwork required by the insurer. Once all the relevant documents are collected and verified by both parties (insurer and claimant), you can fill out forms to make a claim for death benefits. Forms include detailed instructions, so read them carefully before submitting them back to the insurer, along with copies of all relevant documentation, including legal paperwork, if applicable.
5. Wait for approval from the insurer and claim policy benefits. Following submission of all required paperwork and verification by both sides (such as the arrangement for the payouts), the last step is approval from the insurer for payment of death benefits or other money from annuities, etc.

It’s important to take steps to prevent unclaimed life insurance policies from happening in the first place. Knowing the details of your policy and staying on top of any changes that occur over the years can help ensure that neither you nor your beneficiaries get surprised.

Here are a few tips to help you do this:

• Regularly review and update beneficiaries: Do this once a year, especially if you’re married or divorced or if your immediate family has experienced recent births or deaths of family members.
• Keep copies of life insurance documents: Keep them in a safe, secure place — one that you have easy access to.
• Share policy information with family members: Letting trusted family members know about your policy eliminates confusion if you die suddenly.
• Pay premiums on time: Keeping your policy current by paying your life insurance premiums when they’re due guarantees policies won’t lapse. It could also save you on late fees.
• Consider automatic payment options: Automating payments removes the worry associated with remembering when premiums are due each month and guarantees there are no issues with delayed payments or late fees impacting your policy status.

Unclaimed life insurance policies occur when the policy doesn’t get claimed after the death of the insured. There are many reasons this happens, and most stem from poor communication between the insured person and family members.

By keeping the lines of communication open, you can help ensure that your loved ones won’t miss out on much-needed death benefits or unclaimed funds (unclaimed life insurance money) in the event of an untimely passing.

Methodology: Our System for Rating Life Insurance Companies

Our team researches and ranks life insurance companies using an in-depth scoring system that considers the factors most important to consumers like you. Our analysis includes a comprehensive review of each provider we feature based on available coverage, customizability, availability, customer service and company reputation. Here are the factors we take into consideration when rating life insurance providers:

• Brand trust (40%): Life insurance payouts can exceed $100,000 or more, which makes choosing a reputable and trustworthy insurance provider important. To assess brand trust, we use J.D. Power and Associates customer satisfaction surveys, AM Best credit rating scores and the National Association of Insurance Commissioners (NAIC) complaint index. The higher a company scores in each area, the more points it receives.
• Coverage (33%): The more policy options a life insurance company offers, the more opportunities you have to obtain the right coverage for your specific needs. For this reason, we give companies the most points for offering multiple types of life insurance, including various term, permanent and no-exam options.
• Availability and ease of use (19%): Since life insurance coverage options can be complex, we consider the ways a customer can reach a company — and how easy communication is. For this category, we research how many communication channels a company offers for general customer support, claims processing and the application process. Companies earn the most points for offering various ways to interact with an agent, both in-person and online.
• Riders (8%): Companies offering various life insurance riders or endorsem*nts allow policyholders to better customize their coverage. In this category, we determine how many riders a company offers and award the most points to providers with more than 10 options.