This is a question often overlooked and when it happens is devastating. Many individuals with life insurance take for granted that their loved ones will have no problem locating their life insurance policy when the time comes. They just assume that everything is in place and that their loved ones will find it in the cupboard or pantry, just to discover, during the years that simple package was moved by cleaning or thrown out during a move. There are hundreds of thousands of individuals who are in this predicament and are now lost. There has to be a central database where an individual can go and find out if their loved one has an unclaimed insurance policy.
After researching this subject due to my own fathers passing, I found, there is no place someone can go to for help. Due to the Privacy Act, the insurance companies cannot and will not make this information public on a central database. With well over 1500 life insurance companies in the United States alone, finding a lost insurance policy as unclaimed money, is like looking for a needle in a hay stack. Here are individuals that have paid for years on a insurance policy just to have it never used because their loved ones do not know where to look for it or don’t even know that one existed.
There has to be a free service from that allows an individual to register the company name they have life insurance with on their database. By simply registering the company name on an insurance database, one can have the comfort their loved ones will always be able to find their policy information. If security is an issue individuals should consider looking for a database that does nothing but register the company name they have life insurance with. This way you will never be asked for your social security number or any private information. It would be a service even used globally as the information stored can never be used to steal someone’s identity. Now there would never be a reason for lost life insurance policies.
I recently came across a reality show on television called the Storage Wars. It is a show where Storage Unit companies sell off the unclaimed storage units because they no longer can get hold of the owners. This is such a big deal that they have enough to make a reality show. Think about this for a second, if the beneficiaries do not even know there is a storage unit imagine how many insurance policies go unclaimed because of lost paper work or miscommunication. With life insurance we will never know exactly how many go unclaimed. It could be 25% or even more. Unless the insurance company calls every beneficiary and asked if the insured stop paying their premiums because they passed away, we will never have an exact amount. The insurance company will just assume the individual no longer wants the policy.
“TO BE THE BEST IN SERVING OUR MEMBERS BY PROVIDING PEACE OF MIND THAT THEIR BENEFICIARIES RECEIVE THEIR INHERITANCE”