Are You a Life Insurance Beneficiary?

A question befitting the late "Archibald Bunker" has come across my desk today. "If i feel like i was a benefictionary (sic) on a life insurance claim but have not heard from the insurance company what do i need to do" Download

If the insured is still living, you will not be able to receive this information, unless the insured has given written authorization that the life insurer can release this information to you. If an insured has died, the beneficiary must contact the life insurance company and file a claim for the insurance money.  If you are a valid beneficiary the insurer will need to confirm your identity.

Alot of life insurance goes unclaimed. Calling it a "conservative" estimate, Florida Insurance Commissioner Kevin McCarty said 40 of the largest U.S. life insurance companies may owe policy beneficiaries more than $1 billion, according to a May 19, 2011 article in MSN/Money.

If a beneficiary cannot be found the property is subject to being escheated, which is the forfeit of all property (including bank accounts) to the state treasury if it appears certain that there are no heirs, descendants or named beneficiaries to take the property upon the death of the last known owner.

Life insurers generally use the Death Master File, a Social Security Administration list of those who have died, but that has come under investigation is some parts. Usually it's the beneficiary's obligation to find the insurance company after an insured person dies. But that could change now that regulators are aware that some insurers may have used the Death Master File to figure out when to stop paying on annuities, but not when to make payouts to life insurance beneficiaries.

If you have a life insurance it is important to keep the life insurance policy or policies in  safe place (but not in a safe deposit box!), so that your loved ones will not have to rummage through your papers at a time of grief.