Unclaimed Insurance Policies: Understanding Your Options

You've inherited an unclaimed insurance policy, but you're not sure what to do with it. In the United States alone, there are over 400 million unclaimed life insurance policies, with many more scattered across other countries.

The policy may have been purchased by a family member or loved one, but it's been left untouched for years. According to the National Association of Insurance Commissioners, about 1 in 5 life insurance policies go unclaimed.

The good news is that you have options for handling the policy. You can choose to cash in the policy, surrender it to the insurance company, or let it lapse.

More than a billion dollars has gone unclaimed in the U.S. because beneficiaries don't know they're listed on a policy or can't find proper documentation.

The NAIC Life Insurance Policy Locator Service is a great resource to start with. It's an online form available on the National Association of Insurance Commissioners website that can help you find unclaimed life insurance policies.

To use the service, you'll need the suspected policyholder's legal name, Social Security number, and dates of birth and death. The NAIC will then submit the information to participating insurance companies, which search their records for open policies.

The process can take several months, but it's a good starting point. The NAIC has already matched consumers with more than $6.7 billion in benefits since 2016.

Another option is to use the MIB Group, an insurance membership group with records on life insurance applications as far back as 1996. For a $75 fee, you can submit a request to MIB's Policy Locator Service to find out where an individual applied for insurance.

It's worth noting that it's not a guarantee they took out a policy, but it's a good start.

Broaden your view: Group Life Insurance Cover

You can also search for unclaimed policies on state insurance department websites, such as California, New Jersey, New York, and Michigan, which have their own search tools.

The National Association of Unclaimed Property Administrators' Missing Money site is a great resource, allowing you to search multiple state databases at once for free.

John Hancock, MetLife, and New York Life are just a few life insurance companies that offer online policy search tools.

If you think you may be the beneficiary of a U.S. veteran's policy, you can search the U.S. Department of Veterans Affairs' searchable database.

These alternative search options can help you track down unclaimed policies and start the claims process instantly.

If the deceased applied for a policy after 1996, you can try the MIB Group's Policy Locator Service for a $75 fee. This service can provide information on where they applied for insurance, which is a good starting point.

The MIB Group is an insurance membership group with over 420 member companies, and they have records going back to 1996. They're a valuable resource for finding out where someone applied for life insurance.

For a $75 fee, you can submit a request to the MIB Group's Policy Locator Service to find out where the deceased applied for insurance. This fee is a small price to pay for potentially uncovering a life insurance policy that's going unclaimed.

An unclaimed life insurance policy can be a mystery, and it's not uncommon for people to be unaware that they're even entitled to a payout. The policyholder's death often marks the beginning of the process, but the beneficiary may not know about the policy or may have incomplete information.

The policy's status as unclaimed can be due to various reasons, including the beneficiary being unaware of the policy or having forgotten about it. In some cases, the policyholder may have passed away without leaving any information about the policy. The NAIC Life Insurance Policy Locator Service has helped match consumers with over $6.7 billion in benefits since 2016, but the process can take several months.

Here are some key points to understand about unclaimed life insurance policies:

You have the right to claim the money in your unclaimed life assurance policy at any time, and the Unclaimed Life Assurance Policies Act 2003 applies to insurance companies in Ireland and life assurance policies where the policyholder has an address in Ireland.

A policy is essentially a contract between you and an insurance company.

It outlines the terms and conditions of the insurance coverage, including what is covered, what is not, and how much you'll pay for it.

Think of it like a promise between you and the insurance company to provide financial protection in case of an unexpected event.

Life insurance policies that are covered under the Unclaimed Life Assurance Policies Act 2003 in Ireland include policies where the policy holder has an address in Ireland.

These policies are subject to the Act's requirements, which aim to reunite policyholders with their unclaimed benefits.

Policies not covered by the Act are those that form part of the assets of certain schemes, including:

These types of policies are exempt from the Act's provisions, meaning that they are not subject to the same rules and procedures as other life insurance policies.

In Texas, workers' compensation is a no-fault system, which means that employees can receive benefits regardless of who is at fault for an injury.

The Texas Workers' Compensation Act requires most employers to have workers' compensation insurance to cover work-related injuries and illnesses.

Employees in Texas can file a claim for workers' compensation benefits within one year of the injury date.

The Texas Workers' Compensation Commission is responsible for overseeing the workers' compensation system in the state.

Benefits for injured workers in Texas may include medical expenses, lost wages, and permanent impairment benefits.

In Texas, the amount of lost wages that can be recovered through workers' compensation varies depending on the employee's average weekly wage.

Recommended read: Benefits of a Life Insurance Policy

A policy can be unclaimed 15 years after your last communication to the insurance provider, unless the policy was for a specific length of time.

If your policy was for a specific length of time, it can be unclaimed 5 years after the end of the term, or 5 years after you last contacted the insurance provider if that's later.

You have the right to claim the money in your unclaimed life assurance policy at any time, so don't worry if it's been a while since you last heard from your insurance provider.