Data from a 2013 issue of Consumer Reports shows that there are over $1 billion left unclaimed from life insurance policies. How? No one came forward to claim these benefits. How does this happen? Most policy owners, the report said, do not take the time to share policy details with their beneficiaries. Many policy owners, too, forget to update the insurance companies with their current contact information. In such cases, insurance companies are not responsible for locating the beneficiary. So where does all this money go? According to the report, unclaimed death benefits may fill the coffers of the state government. The Vermont State Treasury has collected over $2 million!
It’s YOUR Responsibility
If you are a beneficiary of a policy, bear in mind that the responsibility for applying for a claim is completely on you. If you have a life insurance policy through AccuQuote, we’ve made filing a claim simple for your loved ones. Here are a few tips from AccuQuote to help make sure your beneficiaries receive what is rightfully theirs:
- Inform your beneficiaries about the policy you purchased. Give them the policy number and contact information for your insurance company.
- Let your beneficiary know that they should call the organization that issued the policy (AccuQuote, carrier) as the first step towards filing a death claim. All they need is the policy holder’s full name, address, birth date, and policy number.
- The time frame to receive death benefits ranges from 2 to 30 days depending on the type of policy.
- Give your beneficiary a copy of this useful checklist that will guide them through the claims process.
Remember, your policy must be in-force when you die for your beneficiary to claim any benefits. If your policy has lapsed, you could replace it with a new one. If you have let it intentionally lapse, please inform your beneficiary so that he or she would not have a false sense of security.
AccuQuote conducts an annual policy review for every one of our customers. Change of address, appointment of a new beneficiary, or even changing the face value of your policy because of life changes are taken care of on this call.