Life insurance is the best way to ensure that your family will have financial security after you’re gone: the benefits that they will be able to claim will help them to pay the bills and stay afloat. But did you know that a small percentage of life insurance benefits go unclaimed by beneficiaries every year? That means that your family could miss out on money that is intended to help them after you’re gone. Find out what happens to unclaimed life insurance money and how you can avoid your beneficiaries losing out.
Why Life Insurance Benefits Go Unclaimed
You might be wondering how this could even happen. Well, the number one reason that life insurance benefits go unclaimed is that people will purchase a life insurance policy but forget to tell their family members that they have done so. After all, if you don’t tell your beneficiaries that you have taken out a policy on yourself, they won’t know that there will be benefits they can claim when you’re gone, meaning they’ll miss out on the money meant for them.
The number two reason life insurance benefits go unclaimed? Family members can also forget that their loved ones have a life insurance policy after they’ve passed, which means it’s important that you keep all of your information regarding your policy easily accessible to your beneficiaries.
What Happens if Your Benefits Go Unclaimed?
The good news is that your life insurance company will typically try to contact your beneficiary if they have not claimed their benefits within a certain amount of time after your passing. But if they can’t reach them, they will follow the legal requirements and turn over the unclaimed insurance money to the state.
Making Sure Your Family Gets Their Benefits
Insurers will usually try to get your benefits into the right hands, so the best thing you can do to help them do so is to make sure you name a beneficiary, remember to change your beneficiary if necessary, and keep information on how to reach your beneficiary current at all times. In addition, don’t forget to give your beneficiary a copy of your policy, so they will know exactly how to access their benefits when you are gone.
Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.