Is Insurance Policy Money Looking for You? Life Insurers Start to Seek Out Missing Beneficiaries
Missing life insurance beneficiary: Many times, people forget to tell their beneficiaries about life insurance policy. The life insurance policy or any other policies follow the rule, “You will get only, if you ask for”. If money is not claimed by heirs, it could be seized by state government. Sometimes, beneficiary did not know that he is beneficiary and at this time, unclaimed fund is vanished into the public offer. According to American Bankers Association (ABA), unpaid life insurance is about $1 million with them.
Valerie Jundt has a same experience many years ago. Her brother was given a life insurance by his employer and his brother wrote his sister, Jundt’s name as a beneficiary. Accidentally, her brother died in a motorcycle accident after few years. Later she remembered about policy. But she never got the money to which she was entitled because she claimed too late. So claim benefit at right time and know about such kind of policies from family members, father, mother, sister or brother.
MetLife, Prudential Financial and the John Hancock (segment of Manulife Financial) are giant companies in insurance sector, have started to seek out beneficiaries. This task was led by insurance commissioner of Florida after a separate movement. The National Conference of Insurance Legislators created a law, the Unclaimed Life Insurance Benefits Act which would require regular beneficiary location efforts.
Unclaimed and unpaid policy amount’s issues create more pressure in the time of recession. The unclaimed life insurance policies are easy pickings. Insurance companies have to make sure that the people get their claimed money. The insurance company holds more money and earns interest on it when claims are not called. Agents try to make beneficiaries take their money.
Insurance companies like MetLife, used the Social Security death database to cut off payments to deceased annuity owners. But it made no effort to find the heirs their deceased policy holders. But practically, insurance companies want to hand over the unpaid money to their recipients. They have to pay interest on hold money up to 1% to 3% annually. For companies, it is easier to pay off money in right hands than paying interest.
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