Life Insurance Database: Does It Exist?

If you're wondering whether there is a life insurance database, the answer is yes. The National Association of Insurance Commissioners (NAIC) has created a Life Insurance Policy Locator service, a free online tool that helps consumers find their deceased loved ones' life insurance policies and annuity contracts. This service is available to anyone and can be accessed through the NAIC website. By entering the required information, users can submit a search request that will be stored in a secure, encrypted database accessible to participating life insurance companies. If a policy is found and the user is the beneficiary, the company will contact them directly. This tool aims to help beneficiaries locate unclaimed benefits and navigate the financial aftermath of a loved one's death.

How to use the National Association of Insurance Commissioners' (NAIC) Life Insurance Policy Locator (LIPL)

The National Association of Insurance Commissioners' (NAIC) Life Insurance Policy Locator (LIPL) is a free online tool that helps consumers find their deceased loved ones' lost life insurance policies and annuity contracts. Dealing with the financial aftermath of a loved one's death can be confusing, and the LIPL can help you through the process.

• Go to naic.org in your web browser. Hover over "Consumer" and click on "Life Insurance Policy Locator" under "Tools".
• Review the welcome page and agree to the terms of use.
• Enter your name, mailing address, and email address.
• Submit a search request by entering the deceased's information from their death certificate, including their Social Security number, veteran status, and your relationship to the deceased.
• After filling in all the required fields, click on the submit button.
• Your request will be stored in a secure, encrypted database accessible to participating life insurance and annuity companies through a secure portal.
• You will receive a "Do Not Reply" email confirming the details of your request. If a policy is found and you are the beneficiary, the insurance 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. Please note that the NAIC does not have any policy or beneficiary information.

If you have any questions or need assistance, you can contact the NAIC Help Desk at [email protected] or review the Frequently Asked Questions (FAQ) on their website.

Tips for finding a missing life insurance policy

While there is no central database for all life insurance policies, there are several ways to find a missing life insurance policy. Here are some tips to help you in your search:

Search the Deceased's Documents and Correspondence

Go through the deceased's paper and digital files, storage spaces, bank safe deposit boxes, and other personal records. Look for insurance-related documents, such as policy applications or premium notices. Check bank statements for payments or drafts to life insurance companies and review tax returns for records of interest income or expenses paid to insurance companies.

Contact Relevant Parties

Speak with the deceased's banker, financial advisor, attorney, employer, or insurance agents (e.g., auto or home insurance agents). They may have information about the existence of a life insurance policy or be able to direct you to the appropriate resources.

Utilize Online Policy Locator Tools

The National Association of Insurance Commissioners (NAIC) offers a free Life Insurance Policy Locator tool. This online tool helps beneficiaries find lost life insurance policies and annuity contracts. You will need to provide the deceased's information, including their Social Security number, date of birth, date of death, and relationship to you. If a policy is found and you are the beneficiary, the insurance company will contact you directly.

Check with State Departments

Some states, such as California, Illinois, Louisiana, New York, and Oregon, have their own insurance department search tools or unclaimed property offices. Contact the relevant state department or utilize their online search tools to determine if they can assist in locating the policy within that state.

Explore Company Websites

Major life insurance companies often have policy locators on their websites to help beneficiaries determine if they can collect benefits. Visit the websites of prominent insurance companies and look for online search tools or policy locator services.

Consider Fee-Based Services

If your initial searches are unsuccessful, you can explore fee-based services. The MIB Group, for example, maintains a database of life insurance application information dating back to 1996. For a fee, they can provide you with information on which insurance company the deceased applied to, which can be a significant lead in your search.

Remember, it is essential to conduct a thorough search of the deceased's records and correspondences before utilizing online tools or outside services. Locating a missing life insurance policy can be challenging, but with persistence and the use of these tips, you can increase your chances of success.

What to do if a life insurance policy cannot be found

If you are trying to locate a loved one's life insurance policy and are unsure of where to start, there are several steps you can take to find it. Here is a list of things you can do:

Check the National Association of Insurance Commissioners' (NAIC) Life Insurance Policy Locator:

This is a free online tool that helps consumers find their deceased loved ones' life insurance policies and annuity contracts. To use this tool, go to naic.org, hover over "Consumer", and click on "Life Insurance Policy Locator" under "Tools". You will need to create an account and enter your name and address. Then, submit a search request by entering the deceased's information from their death certificate, including their Social Security number. Your request will be stored in a secure, encrypted database that participating life insurance companies can access. If a policy is found and you are the beneficiary, the company will contact you directly.

Contact the insurer directly:

If you know which company holds the policy, contact them directly. They can tell you if you were named as a beneficiary and help you file a claim.

Check with your loved one's financial advisor:

Give your loved one's financial advisor or accountant a call. If their client gave them permission, a financial advisor may have already contacted the life insurance agency and can help beneficiaries file a claim.

Conduct a free search with the National Association of Unclaimed Property Administrators (NAUPA):

NAUPA has a free tool to locate lost or unclaimed insurance money and other property. Select your state, and you can see if there is a record of any insurance benefits or money owed to you.

Contact previous employers:

Many companies offer life insurance as part of their employee benefits packages. Contact the HR department of your loved one's most recent employer to see what they have on file. They may have a record of life insurance policies for past employees.

Try the state insurance department:

Unclaimed life insurance eventually goes to the state insurance department if the insurer is aware that the policyholder has passed away but the beneficiary hasn't filed a claim. The NAIC can provide you with the insurance department contact details for the state in which your loved one held a policy.

Check the decedent's records:

Look through the decedent's records, including their safety deposit box, old tax returns, and bank statements. Check for payments made to a life insurance company or review their income tax records.

Contact the decedent's auto or home insurance agent:

The decedent may have purchased life insurance through their auto or home insurance agent.

Remember that it is essential to conduct a diligent search of the deceased person's records before utilizing any online tools or services. These steps should help you locate a lost life insurance policy and ensure that you receive the benefits you are entitled to.

What to do if you cannot locate the company of a life insurance policy

There is no single database for life insurance policies, but there are several steps you can take to locate a policy if you suspect that a loved one had one. Here are some instructions to follow if you are unable to locate the company of a life insurance policy:

Firstly, search through the deceased's records, including safety deposit boxes, paper and digital files, and other storage spaces for insurance-related documents. Check their bank statements for any payments made to a life insurance company, and review their income tax records for the past two years for any interest income or expenses paid to life insurance companies.

You can also check their mail and email for premium or dividend notices, although if policy payments are up-to-date, there may not be any notices of payments due. However, the company may still send an annual notice regarding the policy status or a statement of a dividend. Contact the decedent's previous employer as they may have been a certificate holder of an employer-provided group life policy. Also, check with their auto or home insurance agent as they may have purchased life insurance through them.

If you find a life insurance policy but cannot locate the company, you can try searching for the company online or by calling a consumer hotline or insurance department for assistance. For example, in California, you can call the Consumer Hotline at 1-800-927-4357 or check the Company Profile on the Department of Insurance website to obtain address and phone contact information.

If your initial search turns up empty, there are still actions you can take. You can submit a request to the National Association of Insurance Commissioners' (NAIC) Life Insurance Policy Locator (LIPL), a free online tool that helps consumers locate benefits from life insurance policies or annuity contracts purchased anywhere in the United States. To use this service, go to naic.org, hover over "Consumer," and click "Life Insurance Policy Locator" under "Tools." After agreeing to the terms of use, enter your name, mailing address, and email address, as well as the deceased's information, including their Social Security number, veteran status, and relationship to you. Your request will be stored in a secure, encrypted database that participating life insurance and annuity companies can access. If a policy is found and you are the beneficiary, the company will contact you directly.

If you know or can guess the state where the policy was purchased, you can also contact the state's Unclaimed Property Office or search the state's unclaimed property database. When a life insurance company is aware that an insured client has died but cannot find the beneficiary, they must turn the death benefit over to the state as "unclaimed property." The National Association of Unclaimed Property Administrators has a search tool that can direct you to your state's database.

Keep in mind that there may be special challenges, such as the insurance company changing its name, merging with another company, or selling the policy to another company. In these cases, the NAIC provides tips on how to locate the insurance company. If the company has gone bankrupt, you can contact your state's life and health guaranty association. The National Organization of Life & Health Insurance Guaranty Associations has a search tool to help you find your state's guaranty association, which can provide continued coverage for policyholders up to the limits outlined in state law.

How to sell a life insurance policy

Selling a life insurance policy to a third party is known as a life settlement. The amount the policyholder receives is usually more than the cash surrender value of the insurance, but it's typically much smaller than the policy's death benefit. A viatical settlement is similar, but it involves someone with a terminal illness selling their life insurance policy. A payout is usually substantially higher in this case, as the person's shortened life expectancy means the buyer will pay out sooner.

Find a broker or settlement company

The policyholder shares information about their life insurance policy and health with interested brokers or settlement companies to determine if their policy is sellable.

Make the sale

The buyer pays the policyholder a lump sum. The policyholder no longer has to pay premiums, as the buyer takes over payments.

Change the beneficiary

When the policyholder dies, the death benefit goes to the buyer instead of the originally listed beneficiaries.

A policyholder will typically receive between 10% to 25% of their policy's death benefit in a life settlement, or 50% to 85% of their policy's face value in a viatical settlement.

Should you sell your life insurance policy?

Selling a life insurance policy can make sense if you no longer need coverage, particularly if you need money for retirement or healthcare costs. However, there are some potential pitfalls to consider, such as complex processes, high broker commissions and tax implications.

How to sell your life insurance policy

If you plan to cash out your life insurance policy, here are some steps to follow:

• Gather important documents: Buyers will want to see information on the life insurance policy and the policyholder's medical records.
• Look for reputable brokers and settlement companies: Interview multiple brokers, learn about their licensing and commission structure, and research settlement companies thoroughly.
• Compare multiple offers: Speak with several brokers and settlement companies before agreeing to a deal.

Alternatives to selling your life insurance policy

If selling your life insurance policy doesn't seem like a good option, here are some alternatives:

• Reduce the death benefit: Some life insurers will enable policyholders to reduce their coverage level to make premiums more affordable.
• Cancel a term life policy: Cancelling a term life policy won't provide any benefit to the policyholder, but it can relieve them of premium payments.
• Claim accelerated death benefits: Some life insurance policies have an accelerated death benefit rider, which enables policyholders to access some of the policy's death benefit while they're still alive.
• Surrender the policy: Permanent life insurance builds cash value, so the policyholder can surrender the policy and receive a payout.
• Take out a loan: Some permanent life insurance policies enable policyholders to take out a loan from a life insurance policy.
• Use the cash value to reduce premiums: Some life insurers allow policyholders to use the cash value to offset rising premiums as they age.

Frequently asked questions