Claiming lost life insurance benefits is a topic we first brought to your attention earlier this year. This has always been a point of contention for life insurance carriers and consumers alike. Tracking down a life insurance policy is a time consuming and difficult task for insurance providers and finding lost policy information for beneficiaries can be just as tricky.
In an effort to help beneficiaries claim the life insurance benefits to which they are entitled AIG and other industry giants have recently agreed to a historic change in practice. Insurance carriers will now routinely cross reference their list of customers with the Social Security Administration death database to identify those who have in fact passed away. The responsibility will then fall upon these companies to contact the beneficiaries and issue death benefit payments.
What This Means for You
While this historic change in industry practice will help reconcile millions of Americans with the life insurance benefits to which they are entitled, it does not take all of the responsibility out of the insured’s hands. It’s still in the best interest of your life insurance beneficiaries to provide them with your basic policy information while you’re alive and well. This new system is not fool proof and it can lengthen the period to receive life insurance proceeds.
As thought leaders in the life insurance industry, we are always pleased to see major carriers taking steps to protect those they insure. This historic change will help the industry better advocate for our valued customers. Though this news is comforting to the millions of Americans who currently carry life insurance protection, we urge you to take the proper steps today to protect your family from the difficult task of claiming lost life insurance benefits.
Have questions about claiming life insurance benefits? Here are some great resources to utilize:
- Life Insurance Location System a service of the National Association of Insurance Commissioners (NAIC)
- MIB Group database of all life insurance applications completed in the past 14 years
- FindYourPolicy.com life insurance policy registry website
- MissingMoney.com free listing of unclaimed property including life insurance policies.
Ready to learn more ways to protect your loved ones? Contact us! With no obligation to buy, our team of licensed agents is here to discuss your needs and help you lock in the coverage your family needs.
Interested in learning about life insurance in general? We encourage you follow our Life Insurance Blog; keep up with the news and events that affect the entire industry. While you’re here, check out these recent related posts: