Being a beneficiary of a loved one’s life insurance policy (the person they have chosen to receive the money known as a “death benefit”) isn’t something that happens to us every day. So, it’s understandable you might be confused about life insurance beneficiary rules, and about how the process works. Let’s say you’re not sure you’re a life insurance beneficiary. Will someone tell you? Or do you have to do something to find out?
In most cases, beneficiaries know they’re beneficiaries because the policyholder tells them ahead of time. This is the ideal situation—a loved one who’s still alive lets you know you have been named their life insurance beneficiary and where to find the policy if they die while the policy is in force. If the loved one passes away, you know how to locate the policy and contact the insurance company to make a claim.
But, sometimes, policyholders forget to tell their beneficiaries about the policy or the details—where they keep the paperwork, how much the policy is worth, and the name and contact information for the insurance company. You may have an idea that there’s a life insurance policy and that you were meant to be a beneficiary, but you don’t know for sure. Now, what?
Many life insurance companies try to contact beneficiaries if the beneficiaries don’t contact them first. The “catch” is that there’s no automatic process that tells them about policyholder deaths. Usually, the way the insurance company finds out the policyholder has died, and that the policy needs to be paid, is from the beneficiaries or other family members. Many states require insurance companies to check the Social Security “Master Death File” for deceased policy holders and to try to notify their beneficiaries when they find a policyholder on that list. But that can take time. And it’s not the rule in every state.
So, don’t count on the company finding you. If you think your loved one might have had a life insurance policy, and you might be a beneficiary, there are things you can do to find out.
One suggestion is to ask other members of the family, if possible. Someone might know something you don’t. Assuming you have the authority to look through your loved one’s personal papers (or can get permission), look for the insurance policy itself. If you don’t find the policy, look for life insurance receipts or evidence of payments in a checkbook register. Remember to check digital storage—computers and mobile phones—as well. If you think your loved one may have been covered at work, contact that person’s former employer or labor union. If any of these searches turn up the name of the insurance company, that can sometimes be enough to start the claim process. (Having a company name and a policy number is even better.)
Let’s say you try those steps and come up empty. Don’t give up—there are still ways to track down a life insurance policy. You might want to contact the National Association of Insurance Commissioners (NAIC) for their free Life Insurance Policy Locator Service, which looks for policies on the databases of many insurance companies. Another great resource could be your state’s Department of Insurance (DOI). Some states have DOI websites where you can put in information about the deceased and find out if they had insurance policies.
One last thought. If you have a life insurance policy of your own, make sure your loved ones know about it. That will help make it easier for them to get the money you want them to have.
FAQs
The best way is to contact the policy's issuer (the life insurance company). Their records are key: even if you see your name listed on an old policy document, the deceased may have changed their beneficiaries (or the allocation of benefits among those beneficiaries) after that document was printed.
How do you find out if you are beneficiary of a life insurance policy? ›
The best way is to contact the policy's issuer (the life insurance company). Their records are key: even if you see your name listed on an old policy document, the deceased may have changed their beneficiaries (or the allocation of benefits among those beneficiaries) after that document was printed.
How do I prove I am a beneficiary? ›
Gather Necessary Documents
These may include a certified copy of the death certificate, the policy document, and a completed beneficiary statement. In some cases, you may also need to provide additional documentation, such as proof of identity and relationship to the deceased.
Am I the beneficiary of an insurance policy? ›
The beneficiary of a life insurance policy is the person, group of people, trust or organisation that you nominate to receive an agreed payout if you pass away and your life insurance claim is approved. You can nominate your beneficiaries when you buy life insurance and update your nominations at any point.
Is there a database to search life insurance policies? ›
That's where the Life Insurance Policy Locator comes in. This free online tool is maintained by the NAIC and requests are secure and confidential. Any matches found by participating insurers are reported to state insurance agencies through the NAIC Life Policy Locator.
How long does a beneficiary have to claim a life insurance policy? ›
There is no time limit for beneficiaries to file a life insurance claim. However, the sooner you file a claim for a death benefit, the sooner you will receive your money. Filing as soon as possible makes sense because the insurer could need a month or longer to investigate the claim before paying out.
Is life insurance beneficiary confidential? ›
The primary rule that must be followed is that you cannot release beneficiary-specific information to anyone unless the beneficiary authorizes that person to receive his or her information.
Can you find life insurance policy with Social Security number? ›
In your web browser, navigate to naic.org, hover over Consumer, and click Life Insurance Policy Locator under Tools. Submit a search request by entering the deceased's information from the death certificate: Social Security number.
Can someone make you a beneficiary without you knowing? ›
If you've lost a family member or close friend, you may be listed as a beneficiary without even knowing it. Suppose the deceased didn't have a partner or children to name on their policy; they might have branched out to other relationships when choosing the beneficiary of their life insurance policy.
How can I find out if a deceased person had life insurance? ›
In addition to looking through the deceased's records, you can also check with sources like the deceased's financial advisor and the National Association of Insurance Commissioners.
In many cases, it takes anywhere from 14 to 60 days for beneficiaries to receive a life insurance payout. But many factors impact this time frame. These include the insurance company's procedures, when the claim is filed, how long the policy was active, the cause of death, and state laws regarding insurance payouts.
What is life insurance beneficiary rules? ›
If the life insurance policy has a designated primary beneficiary, they will be first in line to receive the death benefit for a life insurance policy. If the primary beneficiary is deceased, a secondary or contingent beneficiary is eligible to file a claim.
Can you dispute life insurance beneficiary? ›
Can you dispute a life insurance beneficiary? It's possible to dispute or contest a life insurance policy. However, doing so requires a legal court process. Since the process is quite complex, you should hire an experienced attorney to help you out.
How do I trace a life insurance policy? ›
If you can identify the name of a life insurance provider, try contacting them - the details should be on any policy documents or on their website. Even if you don't have a policy number, providing some of your personal details can help the insurer to locate the policy and tell you whether it's still valid.
Is an old life insurance policy worth anything? ›
A policy that lapsed before the policyholder died has no value. But if the policy was still in force when the insured died, that policy's death benefit may still be available to the beneficiary. Note that the death benefit amount could be different from the policy's original face value. Several factors can cause this.
What happens if a life insurance company can t find the beneficiary? ›
If no primary beneficiary is listed, the death benefit goes to a contingent beneficiary. Otherwise, it goes to your estate and will likely have to go through the probate process.
How do I track down my life insurance policy? ›
Tips for finding a lost life insurance policy
- Search the deceased's documents and correspondence. ...
- Submit a request to the NAIC Life Insurance Policy Locator Service. ...
- Contact the state's Unclaimed Property Office. ...
- Be aware of special challenges. ...
- Keep in mind fee-based services are available if needed.
