Many people struggle to get life insurance policy payouts after the death of a loved one.
Whether you lose your parent, spouse, sibling, or other relative, your life has been forever changed.
Such deaths are devastating for those left behind.
Emotions can be paralyzing at a time when you need to organize your loved one's affairs.
One action you should take is to identify whether your loved one has a life insurance policy.
If there was a policy, it could be critical to paying funeral expenses, settling debts, and providing financial support during this time.
Searching for a life insurance policy can be complicated if the estate is disorganized.
Life insurance companies are not responsible for tracking whether their policyholders are still alive.
Beyond that, a very common hurdle life insurance companies face is locating the policy beneficiaries.
In most instances, the policy beneficiary contacts the company, provides proof of death, and files the claim for the life insurance proceeds.
Pro tip?
If you have life insurance, simplify claims by sharing the location of your policy and keeping beneficiary designation information updated.
After the death of a loved one, finding the policy should be prioritized.
The USA Today article titled “How to Find Life Insurance Policies of a Deceased Parent,” recommends first looking through personal files and documents.
While some people store life insurance policies in a safe deposit box at the bank, others keep them at home.
Where might you search in the house?
Good places to check are desks, drawers, and filing cabinets.
What actions can you take if you do not know whether a life insurance policy exists?
You can look through the mail for correspondence from a life insurance agent or company or review online bank statements for recurring payments.
If you are having trouble gathering documentation for the life insurance policy, contact the estate planning attorney or the financial advisor who worked with your parent or spouse.
They will likely know whether a policy was listed as an asset for your loved one.
If your loved one had auto or homeowners insurance, you can check with these providers to see if they also had a life insurance policy with the company.
The National Association of Insurance Commissioners (NAIC) offers an online service for researching life insurance policies.
If you submit a request, participating companies can review their records to see if there are policies in the name of your spouse or parent.
To access this support, you will need to provide information such as your loved one's full name, date of birth, Social Security number, and date of death.
You will also likely have to share your relationship with the deceased.
Private search services may be the next available option for those who have exhausted all other avenues for finding a policy.
By paying a fee for private search services, you can have someone contact insurance companies on your behalf to inquire about the existence of a policy.
After finding the policy information, you can contact the life insurance company directly to learn the names of the beneficiaries.
If you are a listed beneficiary, the insurance company will require proof of identity, such as a Social Security number or driver's license.
To file a claim, you will need to gather some information.
What will the company require for a claim?
You will need the insured's full name, maiden name, Social Security number, and death certificate, as well as proof of your own identity and relationship to the deceased policyholder.
The method for filing claims will vary based on the company.
Some companies make online claim filing available, but others require surviving loved ones to contact them directly.
The two life insurance policy categories are permanent and term life insurance.
What are the differences?
Permanent life insurance offers coverage over an entire lifetime as long as premium payments continue to be made.
Universal life insurance, variable life insurance, and whole life insurance are all subtypes of permanent life insurance.
Term life insurance provides coverage only for a set period of time.
The policyholder must die within the set time for death benefits to be paid to beneficiaries.
Life insurance can be a valuable estate planning tool when loved ones can locate it.
The policy payouts can provide financial relief to families or support for the estate during a challenging time.
If you are interested in learning how a life insurance policy can be incorporated into a comprehensive estate plan, contact our law firm.
Locating a life insurance policy can be challenging if the deceased individual was not organized in their filing or clear in their communication.
Professional advisors, attorneys, private search services, and the National Association of Insurance Commissioners' online locator service can help find policies.
Before filing a claim, you should gather key information on the policyholder and yourself.
If you consider making life insurance a part of your estate plan, you should understand the differences between term life and permanent life insurance policies.
Estate planning and organization are vital to protecting everyone you love and everything you have.
This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
Reference: USAToday (Sep. 21, 2023) “How To Find Life Insurance Policies of a Deceased Parent”
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