Reasons For Unclaimed Life Insurance

​In the United States, there are over $30 billion unclaimed life insurance benefits. That's a lot of money that could go to a family or individual eligible for this money!  There are many reasons why people may not be aware of how to claim these funds. This blog post will provide some reasons why life insurance goes unclaimed. It will also give you tips to avoid these unwanted scenarios!

1. The life insurance company doesn't know the insured has died.
   Life insurance companies are always in a difficult position because they don't know when their policyholder dies or if the person had an accidental death.
   
   The company might be in some premium-paying stage, and payments stop. Still, there is no reason to assume that he/she died because all they need is someone to pay them for one more month.
   
   However, employers who sponsor group life insurance to active employees can notify the life insurer if they notice an employee has died. It's possible that a deceased person also has individual policies with the same company. Still, it becomes less likely when people switch jobs without changing their insurers first.
   
   Moreover, it's best to give your beneficiaries your life insurance company's name and contact information so that they can report you as deceased and file a claim. 
   
   
2. The life insurance company and the policy owner have lost contact with each other.
   In this day in age, it is almost impossible to keep your contact information up-to-date. One unforeseen consequence can be that an institution will not know how to get a hold of you; if they need help with something - like paying out on death benefits from their policies! It's worth informing these organizations where you are now, so there won't be any misunderstandings later down the line.
   
   If you move, immediately change your mailing address on all financial institutions' records. It includes updating the life insurance company with new phone numbers and email addresses because they should be considered just as valuable for any emergencies that may arise down the road.
   
   
3. Beneficiaries are unaware of existing insurance plans. 
   Beneficiaries are often unaware that they might be beneficiaries under an individual or group life insurance policy. The insured may have varied reasons for keeping this a secret, but it can lead to the benefits not being claimed because no one knew about them in the first place!
   
   To prevent it, tell the beneficiaries of your life insurance (both individual policies and group coverages) that they will be entitled to death benefits when you die. And provide them with the name, location, policy number for your coverage, and any group coverage through an employer or organization. 
   
   
4. The original life insurance agency no longer exists or cannot be found. 
   If a company changes its name, it can make life insurance claims difficult for beneficiaries. The original insurer no longer exists or cannot be found in many cases. It is just one of the hurdles that potential claimants face when finding information about their lost loved ones' policies and benefits from an outdated source.
   
   So make sure to keep a detailed and up-to-date list of your life insurance company's contact information, including any changes in name or location. It will be easier for the beneficiaries to make their claim if they know about all the sudden shifts that have taken place. 
   
   With that, you should find a reliable agency to assist you with unclaimed insurances and give you the quality service you deserve. 

At Insurance Plans of America, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at  (877) 752-6711 or Click Here to request a free quote.