Billions in Unclaimed Life Insurance: Could Your Family Be Owed Money?

Maria was sorting through her late father's desk when she found an old envelope tucked beneath a stack of tax returns. Inside was a faded statement from an insurance company she had never heard of.

Her father had passed away two years earlier, and the family had settled his affairs. Nobody had ever mentioned a life insurance policy.

The Policy Nobody Remembered

Maria's discovery is more common than you might think. People buy coverage, move, change jobs, or simply forget to tell loved ones where the paperwork is kept. An insurance company can only pay a death benefit (the money paid to a beneficiary when the insured person passes away) once someone files a claim.

But how much unclaimed life insurance is out there? A lot, apparently!

According to the National Association of Insurance Commissioners, its free Life Insurance Policy Locator has helped match consumers with more than $16 billion in lost and unclaimed benefits.

Where Forgotten Coverage Hides

Maria's father had spent years at a manufacturing company that offered employer provided group life insurance. Many employers include coverage worth one or two times a worker's yearly salary, and some let it continue into retirement. Families often overlook these policies because the employee never wrote a check for them.

Other places worth checking include old whole life or term policies bought decades ago, small policies attached to bank or credit union accounts, coverage through a professional association, and annuities with a death benefit.

How Maria Found Her Answer

Maria started by looking through her father's mail, bank statements, and tax records for premium payments to unfamiliar companies. Next, she submitted a request through the NAIC Life Insurance Policy Locator, which shares your search with participating insurers at no cost.

Within weeks, one company confirmed a small policy in her father's name. She also called his former employer's human resources office and learned of a group policy that had never been claimed. Together, the benefits brought her family real relief during a hard season.

Start Looking Before Another Year Passes

You do not need to be an expert to begin. Gather any papers, check with past employers, and search your state's unclaimed property office. If you would like help reviewing your own coverage, or making sure your loved ones will know exactly where to find it, contact our office today.