How to Ensure Your Loved Ones Can Collect Life Insurance Benefits

Did you know that there is currently over $1 billion in life insurance death benefits that are sitting unclaimed? That’s because a surprising number of people don’t file claims when necessary and insurance companies are not required to locate beneficiaries when policyholders pass away. If a death benefit goes unclaimed, the money eventually gets passed on to state governments. In fact, many states have earned millions in this fashion.
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But why wouldn’t a beneficiary file a claim? Many policyholders feel confident that they’re protecting their loved ones, yet they often forget to share policy details with their beneficiaries. Other times, beneficiaries may not know that it’s their responsibility to file a claim.

So what can you do to ensure that your loved ones are able to collect death benefits? First of all, always inform your beneficiaries about the details of your policy and how to contact your insurance provider. Next, tell your beneficiaries that they must call the insurance provider in the event of your death and provide the policy number and the policyholder’s name, address and birth date in order to file a claim.

Keep in mind, the policy must be in force when the policyholder dies in order to successfully file a claim. If for some reason you wish to let your coverage lapse, inform your beneficiaries so they don’t expect extra financial security that no longer exists. However, for those that wish to maintain coverage, your beneficiaries can expect to receive benefits between two and 30 days after filing a claim.

Protect your loved ones for years to come. Call Walnut Risk Management at 816-503-6222 for more information on life insurance.

Posted 1:23 PM

Tags: life insurance

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