Life insurance is supposed to provide peace of mind, but for some policyholders, it becomes out of sight, out of mind. Policies are stuck in drawers and forgotten. Family members may not know they’re listed as beneficiaries on a policy. As a result, billions of dollars in life insurance benefits have gone unclaimed.
Could you be among those owed money?
Nationwide, the amount owed is huge — $7.4 billion so far. That’s what major life insurance companies have agreed to pay in unclaimed benefits, according to the Florida Office of Insurance Regulation. Of that, $5 billion will go directly to beneficiaries they find. And $2.4 billion will go to states, whose unclaimed property departments will work at searching for and paying beneficiaries, Florida insurance regulators say.
The issue has been reported widely the last several years and was recently featured on 60 Minutes.
Life insurers under investigation
The agreements came about after some states, led by Florida, began investigating the life insurance industry in 2009. Forty-one states are now part of the effort, according to the California State Controller’s Office. Regulators concluded that insurers weren’t doing enough to pay out on life insurance policies when insured people had died but the beneficiaries hadn’t filed claims.
READ MORE https://www.usatoday.com/story/money/personalfinance/2016/06/11/unclaimed-life-insurance-money-payout/85718732/
Credits: USA TODAY