Documenting Life Insurance: A Guide For Beneficiaries

Life insurance is a contract where a policyholder pays monthly or yearly premiums, and, in exchange, the insurer promises to pay a death benefit to the policyholder's beneficiaries. However, many people don't know they're listed as a beneficiary on a loved one's life insurance policy, and millions of dollars in benefits go unclaimed each year. To document life insurance for beneficiaries, it's important to first understand how to find out if you're a beneficiary and then know what steps to take to file and collect a claim.

Locating a missing policy

Speak with Family and Close Friends:

People close to the deceased may have relevant information about the policy, such as where it was stored, the names of beneficiaries, or the insurance company. If the policyholder had an insurance agent, their contact details might be in the deceased's contacts. This agent could be a good starting point and may be able to provide valuable information.

Contact the Insurance Company:

If you know the name of the insurance company or the agent who sold the policy, you can reach out to them directly. They will likely require proof that you are a beneficiary, such as your driver's license, social security number, and the policyholder's death certificate. Contacting the insurance company is a crucial step, as they can provide guidance and support throughout the process.

Review Documents (Physical and Digital):

Conduct a thorough search through the deceased's personal belongings, papers, files, and any other places they may have used to store important documents, including safe deposit boxes (if you have access). Check bank statements for premium payments or indications that they withdrew from a whole life policy. Remember to also check digital storage on computers and mobile phones.

Contact the Deceased's Advisors:

If you are unsure who the insurance agent was, try reaching out to the deceased's accountants, attorneys, financial professionals, or spiritual advisors. These individuals may have information about the policy or can direct you to someone who does.

Utilize Life Insurance Policy Locators:

Certain organizations provide online tools and services to help locate missing policies. For example, the National Association of Insurance Commissioners (NAIC) offers a Life Insurance Policy Locator Service, which searches the databases of many insurance companies. Additionally, the MIB Underwriting Group database contains records of life insurance applications, and the NAIC Life Insurance Policy Locator allows you to submit a request for participating companies to search their records.

Contact Relevant Institutions:

Get in touch with the deceased's automotive and home insurers, as people often purchase different types of insurance from the same company. Contact their past employers or associations, as some employers offer group life insurance to their employees, and this policy may still be active. Additionally, check with trade unions, veterans' associations, alumni associations, or other professional organizations that may have offered group life insurance to their members.

Check Public Records and Online Databases:

Life insurance policies may be listed in public records, such as the deceased's will or divorce proceedings. You can also check online databases, like MissingMoney.com, which lists unclaimed life insurance benefits turned over to state governments.

Remember, even if you don't have the policy document, you can still initiate a claim. Focus on gathering as much information as possible, such as the company name, policy number, and your own proof of identity. This information will be crucial in locating the policy and initiating the claims process.

Contacting the insurance company

Identifying the Insurance Company

Firstly, you need to identify the insurance company that issued the policy. This information can be obtained by checking the policy documents or by speaking with family and close friends of the deceased, who may know about the policy's existence and the insurer's details. If you cannot find the relevant information, try reaching out to the deceased's insurance agent, accountant, attorney, or financial advisor. Alternatively, you can use online tools provided by organisations such as the National Association of Insurance Commissioners (NAIC) to locate the policy.

Once you have identified the insurance company, you should contact them directly. Be prepared to provide proof of your identity as a beneficiary, such as your driver's license or social security number, along with the policyholder's death certificate. It is advisable to gather all the necessary documents beforehand to make the process smoother and less stressful. You will also need to notify the insurance company about the death of your loved one and provide details such as the policyholder's name and date of birth.

Submitting a Claim

After contacting the insurance company, you will need to submit a claim for the death benefit. This typically involves filling out a "request for benefits" form, where you will provide information about the policyholder, including their policy number, date and time of death, cause of death, and your relationship to the policyholder. The insurance company will cross-reference these details with their internal records to ensure the accuracy of your claim.

Waiting for Claim Processing

After submitting the claim, the insurance company will begin processing it. They will confirm your identity as the beneficiary and verify that the policy was still active at the time of the policyholder's death. This process can vary in duration between different insurance companies, but it is in their interest to pay out quickly to avoid paying interest charges on unpaid death benefits. You can inquire about the expected timeline for the process.

Receiving the Death Benefit

If your claim is approved, the insurance company will pay out the death benefit to you. The amount and method of payment may vary depending on the policy type and coverage amount. Lump-sum payments and annuities are common options. It is important to note that death benefits are generally tax-free regarding income taxes, but consulting a financial advisor is recommended.

Reviewing the deceased's documents

Start by gathering all the relevant documents of the deceased, including physical papers, files, and digital records. Look for insurance policy documents, which typically contain essential information such as the term, death benefit amount, and policyholder details. These documents are crucial for cross-referencing with the insurance company's internal records when filing a claim. If you cannot find the life insurance policy document, don't panic. You can try contacting the insurance company directly or reaching out to the deceased's financial advisor for assistance.

Review the deceased's financial documents, such as bank statements, tax returns, and other records. Bank statements may show payments made towards life insurance premiums, while tax returns could indicate cash value interest, payments made to insurance companies, or cash distributions. These records can provide valuable clues about the existence of a life insurance policy.

Check the deceased's mail, both physical and electronic, for any life insurance-related documents or correspondence. Insurance companies often send important policy-related information through the mail, so going through their mail can be helpful.

Don't forget to examine the deceased's digital records, including their computer and mobile phone. In today's digital age, many people store important documents and information electronically. Check their email inbox, downloaded files, and any cloud-based storage services they may have used.

Review the deceased's will and any other legal documents. Life insurance policies may be mentioned or listed as assets in these documents, especially if they went through a divorce or had to declare their assets.

Finally, if you have access, check their safe deposit box. Important documents like life insurance policies are often kept in safe deposit boxes. However, keep in mind that you may need a court order to access another person's safe deposit box.

Remember, the goal is to find any information related to the life insurance policy, such as the insurance company's name, policy number, and any other relevant details. Even if you don't have the physical policy document, this information can be enough to initiate a claim.

Contacting the deceased's advisors

If you are unsure whether you are a beneficiary of a deceased loved one's life insurance policy, one of the steps you can take is to contact their advisors. This can include their accountants, attorneys, or financial professionals. These individuals may have information about the policy, such as where it may be stored, the name of the insurance company, and the beneficiaries.

If you are unable to reach the deceased's advisors directly, you can try contacting their firm or office. Explain your relationship to the deceased and provide any relevant information or documentation that may be helpful. They may be able to assist you in locating the policy or provide guidance on the next steps to take.

It is also worth noting that the deceased's insurance agent, if they had one, can be a valuable source of information. If you are able to find their contact information, they may be able to provide details about the policy and assist you in the process of filing a claim.

Additionally, if the deceased had any close friends or family members who are still alive, they may also have information about the policy or be able to direct you to someone who does. It can be helpful to reach out to them and ask for their assistance during this process.

In the event that you are unable to locate the deceased's advisors or obtain the necessary information from them, there are still other methods you can try. These include searching the deceased's personal records and documents, contacting their employer or professional associations, checking online databases, and reaching out to the state insurance commissioner's office and state department of unclaimed property.

Remember that it is important to keep track of any relevant documentation and information you gather during this process. This can include the deceased's legal name, former names, Social Security number, and your own proof of identity. Having this information readily available can help streamline the process of locating the policy and filing a claim.

Using a life insurance policy locator

To use the NAIC's locator tool, follow these steps:

• Go to naic.org in your web browser.
• Hover over 'Consumer' and click 'Life Insurance Policy Locator' under 'Tools'.
• Review the welcome page and agree to the terms of use.
• Create an account by entering your name, email address and mailing address.
• Log in and enter your name and address.
• Submit a search request by entering the deceased's social security number and veteran status, as well as your relationship to the deceased.
• Click 'Submit'.

Your request will be stored in a secure, encrypted database that participating insurance companies can access. If a policy is found and you are the beneficiary, the insurance company will contact you directly. If no policy is found or you are not the beneficiary, you will not be contacted.

In addition to the NAIC's tool, the MIB Group and the National Association of Unclaimed Property Administrators also provide life insurance policy location services.

Frequently asked questions