Finding Income From Life Insurance Payouts

Life insurance is an important financial tool that can provide your family with financial protection in the event of your death. It can be used to cover funeral and burial expenses, pay off remaining debts, and provide an income for your loved ones. When it comes to finding out how much income you made on life insurance, there are a few steps you can take. First, speak with family and close friends who may have information about the policy. Contact the insurance company directly and submit proof that you're a beneficiary. Review the deceased's documents and reach out to their financial advisors. You can also use online tools provided by certain organisations, but you must have a legal right to access the policy information. It's important to keep in mind that life insurance is strictly regulated by privacy laws, and only certain individuals are granted access to policy details.

Check the deceased's documents and correspondence

If you're responsible for sorting out a loved one's financial affairs after their death, you'll need to check their documents and correspondence to find their life insurance policies. Here are some steps to help you through the process:

Check the Deceased's Personal and Financial Records

Go through the deceased's personal and financial records carefully. Look for a copy of the policy, any documents that identify the insurer, or bank statements that show proof of payment to a life insurance company. People can have multiple life insurance policies without their beneficiaries or executor knowing about them, so search thoroughly.

Speak with the Deceased's Financial Advisor

If the deceased had a financial advisor, they may have information about their life insurance policies. Contact them and ask for any relevant details or documentation. They may also be able to guide you on the next steps to take.

Check with the National Association of Insurance Commissioners

The National Association of Insurance Commissioners (NAIC) is a valuable resource for finding life insurance policies. You can check their database of known policies from participating companies. However, they will only respond if there is a policy in the deceased's name, and you are either entitled to death benefits as a designated beneficiary or authorized to receive information.

Contact Former Employers

Employers often provide information about insurance purchased through company benefits or pension plans. Even if the deceased was retired, their former employers may still have relevant information. Reach out to them and inquire about any life insurance policies that may have been in place during their employment.

Notify the Insurer(s) of the Deceased's Passing

Once you've gathered information about the deceased's life insurance policies, notify the insurer(s) as soon as possible. Letting them know about the insured's death will help ensure a smooth process for identifying the policy's beneficiaries. Insurers may not automatically pay out the death benefit if they are unaware of the insured's passing, and the life insurance could go unclaimed.

Begin the Claims Process

If you are named as a primary beneficiary on a policy, you can initiate the claims process. There is usually no time limit for claiming life insurance, but starting sooner can help ensure a smoother payout process. Contact the insurer(s) to understand their specific claim requirements. You will typically need to provide a copy of the death certificate and other relevant documentation to support your claim.

Contact the insurance company

If you know the name of the insurance company that issued the policy, you can contact them directly to help find the policy you need. This will require you to submit proof that you are a beneficiary, such as your driver's license or social security number, as well as the policyholder's death certificate.

If you are fairly certain a policy exists and you believe that you are listed as a beneficiary, the best way to confirm your status is to contact the policy issuer (the life insurance company). Their records are key: even if you see your name listed on an old policy document, the deceased may have changed their beneficiaries after that document was printed.

Once an insurance company confirms that you are a beneficiary, they will tell you how to submit a claim. The process is typically straightforward: you need to show that the policyholder has died and confirm your identity.

If you are not sure which life insurance company holds the policy, you can submit a request to search the National Association of Insurance Commissioners (NAIC) database for the specific policy you are looking for. If the NAIC doesn't find a policy with you as a beneficiary, and you believe such a policy exists, consider reaching out to the deceased policyholder's estate attorney or financial professional, who may have more information.

Contact the deceased's financial advisors

If you are unsure whether the deceased had a life insurance policy, contacting their financial advisors is a good step to take. Financial advisors can help determine what investments the deceased owned and help assess the value of those assets on the date of death. They can also help retitle assets in the name of a beneficiary or an heir.

If you don't know the name of the deceased's financial advisor, try reaching out to their accountants, attorneys, or other financial professionals. They will be able to provide you with the information you need.

When meeting with the financial advisor, it is important to acknowledge that your emotional state may hinder your ability to make decisions. Be patient with yourself as you guide through the next steps related to financial and administrative affairs.

• Assist in locating assets held outside the firm, including pension plans and retirement plans from past employers.
• Inform the beneficiary to contact life insurance companies and file claims.
• Inquire about health insurance and survivor's benefits for spouses and children. If the deceased was a veteran, remind them to check for potential veteran benefits.
• Check for any buy-sell agreements if the deceased owned a business.
• Recommend consulting a tax professional to provide guidance on filing a final income tax return for the deceased and/or their estate, and to ensure state or federal estate tax returns are filed on time as needed.

Use a life insurance policy locator

If you're looking to find a deceased relative's life insurance policy, the National Association of Insurance Commissioners (NAIC) has created a Life Insurance Policy Locator service to help you locate benefits from life insurance policies or annuity contracts purchased anywhere in the United States. This is a free online tool that is easy to use and can be accessed via the NAIC website. Here's a step-by-step guide on how to use the NAIC Life Insurance Policy Locator:

Step 1: Visit the NAIC Website

Go to naic.org, hover over the "Consumer" tab, and click on "Life Insurance Policy Locator" under "Tools". This will take you to the welcome page for the locator service.

Step 2: Review the Welcome Page and Agree to the Terms

Take a moment to review the information provided on the welcome page, which will give you an overview of the service and how it works. Once you're comfortable, agree to the terms of use by clicking the appropriate button.

Step 3: Create an Account

You will need to enter your name, mailing address, and email address to create an account. This information is necessary to ensure secure access to the tool and to protect your privacy.

Step 4: Log In and Submit a Search Request

Once you have logged in, enter your name and address, and then submit a search request by providing the deceased's information from their death certificate. This includes their social security number and veteran status, as well as your relationship to the deceased.

Step 5: Wait for Results

After submitting the request, your information will be stored in a secure, encrypted database. Participating life insurance and annuity companies will be able to access this information through a secure portal to search for any policies in the deceased's name. You will receive a confirmation email with the request details you submitted.

Step 6: Receive Results

If a policy is found and you are the beneficiary, the life insurance or annuity company will contact you directly, usually within 90 days. If no policy is found or you are not the beneficiary, you will not be contacted. It's important to note that the NAIC does not have access to policy or beneficiary information; they simply facilitate the connection between consumers and insurance companies.

Using the NAIC Life Insurance Policy Locator is a straightforward way to find your deceased loved one's life insurance policies and ensure that you receive the benefits owed to you. It is recommended to conduct a diligent search of the deceased person's records prior to utilizing this service, including checking their physical records, bank accounts, tax returns, and insurance policies.

Contact the state's unclaimed property office

If you are unable to find a record of a life insurance policy, it is worth contacting the state's unclaimed property office. This is because, after a number of years, if an insurance company holding unclaimed money is unable to find the rightful owner, they are required to turn the money over to the state. This is usually the state where the policy was purchased. The National Association of Unclaimed Property Administrators (NAUPA) has a search tool that will take you to your state's unclaimed property database. For multi-state searches, www.missingmoney.com combines information from most state unclaimed property databases.

The National Association of Insurance Commissioners (NAIC) Life Insurance Policy Locator Service is another free service that can help you find a lost policy. This service will ask participating companies to search their records to determine whether they have a life insurance policy in the name of the deceased. If they do, the company will respond to you if you are the designated beneficiary or are authorised to receive the information.

If you are the owner or beneficiary of a life insurance policy written long ago, you may need help locating the life insurer that services and pays claims on the policy. Over the years, a policy owner may lose touch with the life insurer due to frequent moves, or the company that issued the policy may have changed its name or merged with another company. The state insurance department can help you find the current insurer.

Frequently asked questions