Losing a loved one is an emotional and challenging experience, and dealing with practical matters like continuing to pay the bills without the income of a member of the family can often add to the complexity. If the person that just died had life insurance, that could be a crucial piece to help ease the financial burden, while focusing on emotional recovery.

But what happens if the survivors don’t know if there was life insurance on their loved one? Or what if they suspect that there was a life insurance policy, but they don’t know the details of it, or don’t have documentation handy? When there is no documentation to begin with, and you are unsure whether your loved one had a life insurance policy, the search can become even more overwhelming. But there are various avenues to determine if someone had a life insurance policy and how to claim the death benefits to which you may be entitled.

Why It's Important to Find a Life Insurance Policy

Life insurance policies can provide financial support when it's needed most. When someone holds a life insurance policy, their beneficiaries can claim a death benefit from the insurance company. The sooner you initiate this process, the faster you'll have access to funds that can cover essential expenses like funeral costs, debts, or ongoing financial commitments.

However, life insurance policies can sometimes remain hidden, leaving beneficiaries uncertain about their existence. In such cases, it's crucial to actively search for the policy to avoid missing out on potential financial relief.

5 Steps to Finding Out Someone Had a Life Insurance Policy

Let's explore the five key steps to help you search for, and find a life insurance policy that may be hidden.

1. Utilize Life Policy Locator Services

Several organizations offer tools and services to assist in your search for a life insurance policy. These include:

• National Association of Insurance Commissioners (NAIC): NAIC provides a free Life Policy Locator tool. To use this tool, you'll need to provide specific information about the deceased, including their Social Security Number, legal name, date of birth, and date of death. The NAIC tool is a valuable resource that can help streamline your search process.

• MIB Group: The Medical Information Bureau (MIB) Group is an organization that serves over 400 member companies in the US and Canada. They offer a Policy Locator Service that can be utilized by the executor or administrator of the deceased's estate. In cases where no executor was appointed, the surviving spouse or the closest living relative can submit a request to MIB. To use the MIB service, you will typically need to submit a completed and notarized application form, the original death certificate, and a fee. This service searches for life insurance policies over the past 20 years and can provide you with valuable information.

• National Association of Unclaimed Property Administrators (NAUPA): NAUPA specializes in locating unclaimed property in every state. You can access state-specific treasury departments through the NAUPA website or perform a broader search on missingmoney.com. This resource can be particularly useful for uncovering unclaimed assets, including life insurance policies.

2. Contact Employers, Attorneys, Financial Advisors and Close Contacts

The deceased's close financial contacts may have information about life insurance policies. It's important to reach out to the following individuals and organizations:

• Former Employer's Benefits Coordinator: Many individuals obtain life insurance through their employers. Therefore, it's a good idea to check with the deceased's former employer's benefits coordinator to inquire if they had group life insurance through the company. Such group policies can often go unnoticed, so it's crucial to explore this possibility.
• Attorneys, Accountants, and Financial Advisors: Legal representatives, accountants, and financial advisors may have records of the insurance policy. They often maintain detailed records of an individual's financial affairs. By reaching out to these professionals, you might uncover vital information regarding the life insurance policy.
• Friends and Family: Close friends and family of the deceased can also be valuable sources of information. Sometimes, individuals share details of their life insurance policy with someone they trust. A conversation with someone who was close to the deceased could lead you to the insurer's name or policy details.

3. Investigate Personal Documents

If you're uncertain about which insurance company might hold your loved one's life insurance policy, it's time to roll up your sleeves and dig through personal documents. Here are some valuable places to search:

• ‍Canceled Checks: Review canceled checks to see if there are any made out to life insurance companies. Sometimes, individuals make premium payments by writing checks. Identifying these payments can provide a significant clue about the insurer.‍
• Bank Records: Visit the deceased's bank and request copies of old checks or account statements. You can check for payments or withdrawals related to life insurance premiums. Bank records can offer insights into the insurance policy and its status.
• Income Tax Returns: Examine recent income tax returns for any indications of taxable withdrawals or dividends associated with life insurance policies. Tax return scan often reveal financial transactions related to the policy.
• Safety Deposit Boxes: If the deceased had a safety deposit box at a bank, it's essential to check its contents. The policy document or related paperwork might be stored in the safety deposit box. To access the box, you may need to provide proof of your authority, such as a court order or being named the executor of the estate.

4. Reach Out to Insurance Companies Directly

Certain insurance companies have tools and services available on their websites to help locate lost policies. By providing essential information about the deceased, you can initiate a search. If you are listed as a policy beneficiary, the insurance company will contact you with policy details. It's a direct and straightforward way to uncover information about the life insurance policy.

Keep in mind that privacy laws may limit the extent of information that insurance companies can disclose if you are not the designated beneficiary. Therefore, it's essential to be prepared and provide the necessary documents and information when contacting the insurer directly.

5. Check with the State

Several states provide assistance in finding lost life insurance policies. To initiate this search, you'll typically need to provide basic information for policy verification. The required information may include the date of birth, date of death, last known address, and a copy of the death certificate.

Keep in mind that states typically search only for policies issued within their jurisdiction. If the deceased resided in another state previously, consider checking there as well.

If the person passed away more than a year ago, you might want to explore the state's unclaimed property division. Incases where life insurance companies cannot locate beneficiaries, they may transfer the proceeds to the state's unclaimed property division.

A valuable resource for searching for unclaimed money is the National Association of Unclaimed Property Administrators, which provides links to unclaimed property divisions in each state.

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Other Considerations

Lapsed Policy Non-Forfeiture

One crucial aspect to consider is the non-forfeiture option for lapsed policies. This option ensures that you can still collect the full death benefit even if the insured's death caused the policy to lapse. There is typically no time limit for collecting a death benefit in this scenario. The primary requirement is presenting the death certificate to the life insurance company to verify the insured's passing.

If the beneficiary does not come forward, the money remains unclaimed. It's important to keep this in mind as you continue searching for the policy.

The Importance of Open Communication Before Death

The search for a missing life insurance policy can be a time-consuming and complex endeavor. It underscores the importance of open communication within families before. Discussing life insurance policies with loved ones ensures that beneficiaries are aware of potential benefits and simplifies the process during challenging times.

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