What Happens to Unclaimed Life Insurance Policies

Life insurance providers are the biggest non-government holders of unclaimed benefits. Nearly thirty percent of all benefits that exceed $500,000 are not paid or not claimed when the policy holder passed away. This is because family members did not give any notice to the insurance provider as they may not have the knowledge that the deceased person had over one policy. This resulted to the separation of insurance firms from their policy owners and the beneficiaries. The inability to provide a notice of name or address change is the main reason for such separation.

Also, life insurance Geelong policies are not presumed as abandoned by a lot of states until the policy holder would have reached his or her 100th birthday. This results to the absence of this kind of unclaimed assets in government databases.

The reorganization of insurance companies has also been the reason there are unclaimed assets or money in many of these firms. Such company movement refers to the change made by a mutual insurance company to a stock company which is accomplished by paying policyholders with stocks as the mutual company discontinues its operation. However, this reorganization will not affect actual life insurance Geelong policies.

Between the years 1985 and 2004, there are over 20 insurance firms that went through reorganization and a lot of the current addresses of their policyholders were not identified and the insured individuals were not noticed that they had stocks in a new company which is an additional ownership to their actual policy.

If you are one of these policyholders or your deceased relative was one, you can be entitled to the policy’s proceeds as well as cash or stock dividends. If the policyholder remains unfound, the reorganization proceeds will be given to an agency of the state following the statutory period which varies by state. The proceeds can be claimed any time but it is likely for the government to sell the stock when time of sale is lost.