Millions in unclaimed life insurance money are transferred to the state until a rightful owner comes forward to claim them. Are you one of those owners? If a family member or friend passed away and named you a beneficiary without your knowledge, this may be the case. Luckily, a free unclaimed life insurance search can help you check if there is a policy with your name on it. Depending on your situation, you may have money waiting to be claimed!
Money from unclaimed life insurance policies is not uncommon. It can be used to help pay for your expenses or those of the individual who has passed away – if you were named responsible for managing their final affairs. Learn how to find and claim this money in the sections below.
When the insured owner of a life insurance policy passes away, he or she typically names a person (a beneficiary) who will receive the money. If no one comes forward or the beneficiary cannot be located, it turns into unclaimed life insurance money and is given to the state.
Other reasons for unclaimed life insurance policies include things like:
- The insurance company is unaware that the insured has passed away.
- The beneficiary’s information is incorrect.
- The beneficiary’s address was not provided on the policy.
- The beneficiary moved and the insurance company could not locate the new address.
- The insurance company changed names or does not exist anymore.
If any of these apply to you, a free unclaimed life insurance search can help you find any policies in which you’re the beneficiary.
In a study done by Consumer Reports, it was reported that 1 out of every 600 people is a beneficiary of a life insurance policy and doesn’t even know it. And with an average policy amount of $2,000, completing a free search may be worthwhile.
Life insurance companies do try to contact beneficiaries about existing policies. But if they can’t be located in a reasonable amount of time, the money is handed over to the state. This is due to the Unclaimed Life Insurance Benefits Act, which created a standard process for insurance companies to turn funds over to state departments.
Some states have adopted another aspect of the Act, which requires insurers to periodically search public death records for insurers and beneficiaries. Check with your state to learn its specific policies.
As you search the unclaimed life insurance database, you’ll typically need to provide information about your identity. You should be able to complete a search using information such as:
- Social Security Number (SSN)
- Full name
- Zip code