Unclaimed Life Insurance Benefits Are Still Being Found — Check Your Family Today

It’s something families rarely talk about: life insurance benefits that go unclaimed after someone dies. And yet, it’s a very real issue. According to the National Association of Insurance Commissioners (NAIC), the free Life Insurance Policy Locator tool has helped locate more than $6 billion in unclaimed benefits so far.

If your loved one passed away and you’re not sure whether they had a policy — or if you’re listed as a beneficiary but never heard from the insurer — now is the time to act.

Why so many benefits go unclaimed

Here are the common reasons why payouts are never collected:

• The insurer and the deceased lost contact (address changed, mail undeliverable).
• The insured died but the insurer never received proper notification or death certificate.
• Beneficiaries didn’t know a policy existed — or weren’t aware they were named.
• The insurance company merged or changed names, and records got lost or mis-filed.

Because of all that, even well-meaning families can miss money that was intended for them.

What YOU should do if you suspect there might be an unclaimed benefit

1. Gather key information about your loved one: full legal name, date of birth, date of death, last known address.
2. Use the NAIC’s Life Insurance Policy Locator tool (free). It allows you to check whether a deceased person had a policy with participating insurers.
3. Check the unclaimed property office for the state(s) where the person lived. Life insurance proceeds may have been turned over to the state if unclaimed for years.
4. Review the deceased’s records: old insurance statements, bank statements with periodic payments to an insurer, employment benefits records (group life), tax returns (look for interest income from policy cash value).
5. If you find a potential policy, contact the insurer (or their successor) and ask whether benefits are due, and whether you qualify as beneficiary or legal representative.

Important reminders for peace of mind

• Finding a policy you never knew existed doesn’t cost you anything — tools like the NAIC’s locator service are free and only connect you if a match exists.
• There are time limits and state-specific rules for when a policy becomes “dormant” or is turned over as unclaimed property — but in many cases, benefits can still be claimed even after years.
• If you are the policyholder or have life insurance yourself, one of the best protections against this situation is to inform your beneficiaries about the policy: who the insurer is, what the policy number is (if you have it), and where documents are stored. That greatly reduces the chances of your benefits becoming “lost.”

Why I’m sharing this as your trusted advisor

Because life insurance isn’t just about choosing the right policy and paying premiums — it’s also about ensuring the benefit actually reaches your family when they need it. Having a policy on paper is only half the job. The other half is making sure someone will claim it when the time comes.

If your family hasn’t done this check yet, give them a nudge. It could uncover unexpected protection and peace of mind you didn’t even know was there.