Some times life insurance policyholders forget to inform their beneficiaries that they have taken out life insurance that lists them as beneficiary. At other times the primary beneficiary knows about the life insurance policy but the contingent beneficiaries are not informed. Should there be an accident that kills the policyholder and primary beneficiary such as an auto crash involving husband and wife. The contingent beneficiaries are left in the dark about the existence of the policy.
Filing a claim is the beneficiary’s responsibility. Due to the lack of knowledge about the in force insurance beneficiaries leave millions of dollars in life insurance proceeds unclaimed. Insurance companies want to pay these claims that are rightfully due. If the claims are never filed eventually the funds of the policy reverts to insured’s home state’s lost property account.
There is no statewide database of insurance policies so the beneficiaries are on their own.
- Safety Deposit Box
- Financial Records for any payments made to an insurance company
- Address Book for adviser, insurance agent, accountant or planner.
You can view a short video by the Insurance Information Institute here. http://www.incomesafety.com/?p=369
You may ask questions in the comments or contact me privately Tim Barton, ChFC