Unclaimed Life Insurance Benefits – Learn It
Once a policyholder dies, the life insurance benefits are sometimes left unclaimed. This is, however, a pity because in any circumstances, and especially in today’s world, more and more people are struggling from the financial point of view. However, there are several unclaimed life insurance benefits that you must know.
- The life insurance holder and the insurance company lost contact with each other.
The main method how your relation with your financial institutions (such as investment management agencies, insurance companies or banks) can be held is through mailing. Whenever you move, make sure that you provide your new mailing address to your insurance agent; otherwise, the company will lose contact with you. This is something that you should perform immediately after doing this step, and inform all of the financial institutions that you are in contact with. The same thing to do is valid whenever your phone number, fax number, and email address changes.
- Regarding unclaimed life insurance benefits, the second thing that you must know is that life insurance companies are not always aware of the death of a life insurance holder that belongs to them.
It often happens that life insurance companies will become aware of the death of their policyholder only upon notifying; this task is usually performed by the policy’s beneficiary. Even if the contract is still open but the payments stopped, the insurance companies don’t have a reason to assume that the policyholder has actually died. Make sure that you have beneficiaries for your life insurance policy. In case that you pass away, the insurance company would want to know who to contact – therefore give their name and contact information.
- The life insurance company could be unable to find the beneficiaries of your policy
There are two problems that could arise in this case. First, the information provided by your beneficiaries is not clear enough for the insurance company to be able to contact these people. This is the reason why naming your beneficiaries precisely and their exact contact information is very important for the insurance agency when you pass away. The other problem consists of the inability for your insurance agent to find the beneficiaries because your policy has been started since decades and since then, the beneficiaries haven’t been updated – if they moved away or their contact information changed during this whole time, the company will not be able to contact them.
- The last thing that you need to know regarding unclaimed life insurance benefits is the fact that your beneficiaries are probably not aware that they actually withhold this status in your life insurance policy.
Even if it sounds surprising, but many times happened that the beneficiaries didn’t know that they are covered with someone’s life insurance policy. The policyholder could have a number of reasons to keep his beneficiaries secret, but this is not helpful, especially because the beneficiaries didn’t know that they could claim life protection through the policyholder’s insurance. Therefore, before you pass away, you should let the people know who are beneficiaries of your policy and let them know that they are entitled to death benefits.