Losing a loved one is already challenging, but managing their financial affairs, especially finding and claiming a life insurance policy, can add additional stress. Life insurance provides valuable financial support by helping to settle debts, funeral expenses, and more. However, tracking down a policy can be overwhelming. This article walks through the common obstacles, how to start the search, and how Vick Law, P.C. can help make the process smoother during this difficult time.
Why Do Life Insurance Policies Go Unclaimed?
Life insurance policies can sometimes go unclaimed if:
- The insurance company is unaware of the policyholder's death.
- Beneficiaries are hard to locate or unaware of the policy.
This makes it more difficult to claim the benefits, but there are several steps you can take to find the policy.
Steps to Locate a Life Insurance Policy
- Search Personal Files and Documents:
- Safe deposit boxes or filing cabinets: Check for important documents like insurance policies.
- Bank statements: Look for premium payments or communications with life insurance companies.
- Incoming/outgoing mail: Correspondence from insurance agents may contain clues about the policy.
- Seek Professional Help:
- Financial advisors, estate planners, or attorneys: These professionals may have information on your loved one's policies.
- Insurance companies: Contact companies that may have other policies (homeowners, auto insurance) to inquire about life insurance.
- State Resources:
- NAIC’s Life Insurance Policy Locator: The National Association of Insurance Commissioners provides an online tool to help locate life insurance policies. You will need to provide basic information such as:
- Deceased's full name and Social Security number.
- Date of birth and death.
- Your relationship to the deceased.
- Private Search Services:
- If you’re having difficulty, private services (for a fee) can search for policies on your behalf by contacting various insurance companies.
What Happens If You Find a Policy?
- Determine Beneficiary Status:
- Contact the life insurance company to find out if you are listed as a beneficiary. You will likely need to provide:
- Proof of identity (e.g., driver’s license, Social Security number).
- The insured’s personal details (name, Social Security number, etc.).
- File a Claim:
- Gather the following documents:
- Deceased’s death certificate.
- Proof of identity and relationship to the policyholder.
- Some companies allow you to file claims online, while others may require direct contact.
Understanding Life Insurance Policy Types
- Term Life Insurance: Provides coverage for a set period. If the policyholder dies within this term, the beneficiaries receive the death benefit.
- Permanent Life Insurance: Offers lifelong coverage, including:
- Whole life insurance.
- Variable life insurance.
- Universal life insurance.
Understanding the type of policy your loved one had will clarify the coverage and benefits.
How Vick Law, P.C. Can Help You Navigate Life Insurance Claims
At Vick Law, P.C., we understand how overwhelming it can be to handle the financial aftermath of a loved one’s death. Whether it’s locating a life insurance policy, filing a claim, or navigating the probate process, we provide compassionate and skilled legal assistance to make the process easier. Book a free consultation with us today.
Key Takeaways:
- Professional Assistance: Financial advisors, estate planners, and attorneys can help locate policy documents.
- State Resources: Utilize NAIC’s Life Insurance Policy Locator to find unclaimed policies.
- Private Services: Paid services can assist with policy searches.
- Filing a Claim: Gather necessary documents like the death certificate to file your claim.
- Understanding Policy Types: Know the difference between term life and permanent life insurance.
Reference: USAToday (Sep. 21, 2023) “How To Find Life Insurance Policies of a Deceased Parent”
