Losing a loved one is challenging, and managing their financial affairs can add to the burden. Amidst the grief and emotional turmoil, you also need to learn if your deceased parent or spouse had a life insurance policy. Uncovering a life insurance policy for a deceased loved one can provide valuable financial support, settling debts and funeral expenses in this difficult time. While the process can be daunting, a skilled estate planning attorney can help you get started.
A life insurance policy can sometimes go unclaimed, if the insurance company isn’t aware that the policyholder has passed away or can’t find the beneficiaries. This can make the process of claiming insurance more challenging. However, you just need to know where to start looking for the policy.
According to USA Today, the first place to look is through your loved one’s personal files and documents. Some common places where you might find life insurance policy documentation include safe deposit boxes at banks or bank statements that include premium payments. At home, search filing cabinets, desk drawers and incoming or outgoing mail that may include correspondence from the insurance company or a life insurance agent.
If you can’t find the policy documentation, consider reaching out to professionals who may have helped your parents or spouse with their financial or legal matters. These professionals might include financial advisors, estate planners and lawyers. You can also check with insurance companies where your parents had other policies, such as homeowners or auto insurance.
The National Association of Insurance Commissioners (NAIC) offers an online life insurance policy locator service. By submitting a request, you can have participating insurance companies search their records for policies in your parent or spouse’s name. You’ll need to provide some basic information, such as the deceased’s full name, Social Security number, date of birth, date of death and your relationship to them.
If you’re still having trouble locating a policy, private search services are available for a fee. These services will contact insurance companies on your behalf to find out if your loved one had any policies.
Once you locate a policy, the next step is to determine if you’re the beneficiary. You’ll need to contact the life insurance company directly. If you are listed as a beneficiary, the insurer will likely ask for proof of your identity, such as your driver’s license or Social Security number.
When you’re ready to file a claim, you’ll need to provide the insurance company with specific information, including the insured’s full name (including their maiden name, if applicable), the insured’s Social Security number, the insured’s death certificate and proof of your identity and relationship to the policyholder.
Some companies allow you to file claims online, while others may require contacting them directly.
There are two main types of life insurance policies: term life insurance and permanent life insurance. Term life insurance provides coverage for a set period. The beneficiaries receive the death benefit if the policyholder dies within this term. Permanent life insurance offers lifelong coverage if the premiums are paid. This includes whole life insurance, variable life insurance and universal life insurance.
Uncovering a life insurance policy for a deceased loved one can provide financial relief during a difficult time. If you need help navigating this process, the death of a loved one, or want to ensure that your own affairs are in order, consider reaching out to an experienced probate and trust administration attorney. If you would like to learn more about the role of life insurance in estate planning, please visit our previous posts.
Reference: USAToday (Sep. 21, 2023) “How To Find Life Insurance Policies of a Deceased Parent”
