Life insurance policies are sometimes forgotten, misplaced, or never discussed with beneficiaries. When a policyholder passes away and no claim is filed, the policy proceeds can sit untouched for years. In many cases, beneficiaries do not even realize a policy exists.
If you believe a loved one may have had life insurance, there are clear steps you can take to track it down and determine whether benefits are available.
What Is an Unclaimed Life Insurance Policy
A life insurance policy becomes unclaimed when the insurer is unable to locate the beneficiary after the policyholder’s death. This often happens because:
The beneficiary was never told about the policy
Contact information was outdated
The beneficiary assumed someone else would file the claim
The policyholder paid premiums automatically and left no paper trail
After a set period, usually several years, insurers are required to turn unclaimed policy proceeds over to the state as unclaimed property. The money is held by the state until the rightful beneficiary comes forward.
Who Is Responsible for Locating Beneficiaries
Insurance companies have a legal obligation to make reasonable efforts to locate beneficiaries. That process typically includes:
Reviewing internal records
Searching known family relationships
Using death record databases
Attempting contact through last known addresses
If the insurer cannot identify or locate a beneficiary, the funds are transferred to the state unclaimed property office in the state tied to the policy.
Once transferred, the state holds the funds until a claim is made. The money does not disappear, but it will not be paid automatically.
Steps to Track Down a Life Insurance Policy
If you think you may be a beneficiary or believe a deceased loved one had life insurance, the following steps can help you locate the policy.
1. Search Personal and Financial Records
Start with what is closest to home. Look for:
Bank statements showing insurance premium payments
Old mail, policy statements, or billing notices
Emails or digital files referencing insurance
Tax records showing interest or insurance related entries
Speaking with family members, financial advisors, or accountants can also uncover useful information.
2. Contact Known Insurance Companies
If you know or suspect which insurer issued the policy, contact the company directly. Provide the policyholder’s full name, date of birth, and date of death if known. Many insurers have departments dedicated to handling unclaimed policy inquiries.
3. Search State Unclaimed Property Databases
Every state maintains an unclaimed property database that includes life insurance proceeds turned over by insurers. You can search these databases online at no cost.
If a policy appears in a state database, the listing will usually show the insurer’s name and the amount being held.
4. Use the NAIC Life Insurance Policy Locator
If you do not know which insurer issued the policy, the National Association of Insurance Commissioners offers a free Life Insurance Policy Locator service. You submit information about the deceased, and participating insurers check their records for matching policies.
This is often one of the most effective tools when no paperwork exists.
5. Work With the State Unclaimed Property Office
If you locate funds held by the state, you will need to submit a claim. This usually requires:
Proof of identity
Proof of relationship to the deceased
A death certificate
Completed claim forms
Once approved, the state releases the funds to the rightful beneficiary.
How Long States Hold Unclaimed Life Insurance Proceeds
States hold unclaimed life insurance proceeds indefinitely, but claiming them becomes more complicated as time passes. Records may be archived, documentation may be harder to obtain, and proving beneficiary status can take longer.
That is why acting sooner rather than later is always recommended.
When Legal Help May Be Useful
Most unclaimed policy searches do not require an attorney. However, legal assistance can be helpful when:
Multiple people claim to be beneficiaries
Policy ownership or beneficiary designations are unclear
The insurer disputes entitlement
The policy proceeds were paid to the wrong party
In those situations, a lawyer experienced in life insurance matters can help resolve the issue and ensure the benefits are paid correctly.
Final Thoughts
Unclaimed life insurance policies are far more common than most people realize. If you suspect a loved one had coverage, taking the time to search can uncover meaningful financial benefits that were intended for you.
The process is methodical, manageable, and often successful when the right steps are followed.