Unclaimed life insurance benefits occur when a beneficiary of a life insurance policy is unaware of or fails to claim the death benefit. The dream of every policyholder is to ensure that their loved ones are financially comfortable when there are no more. But unfortunately, many death benefits go unclaimed due to many reasons.
Without further ado, below are the cold truths about unclaimed life insurance benefits.
- Most unclaimed life insurance benefits are due to the fact that policyholders don’t inform their loved ones about their life insurance policy.
- Insurance companies are often unaware of the demise of a policyholder. Perhaps because they have lost contact with the policy owner. In effect, this means they may not take proactive measures to notify the beneficiary.
- According to the law, insurance companies are expected to report all unclaimed life insurance life benefits to state regulators.
- If there is no claim to a life insurance policy after 100 years, the insurance provider will invest the money in social programs with the aim of making profits.
- The beneficiary will not receive the death benefits without providing all the necessary documents such as death certificate required by the insurer.
- There will be no claim for death benefits if the life insurance company is no more.