The problem with life insurances is that you can never be sure that your beneficiaries will receive them after you go. More troubling is the fact that many seniors failed to tell someone about their life insurances thus their beneficiaries not even knowing they can claim money from insurance companinsuries – some seniors don’t even remember their insurances anymore hence money down the drain. This is especially true for Alzheimer’s sufferers.
Doubts were raised after insurance regulators made an alarming discovery that there is a huge percentage of life insurances not being paid properly to beneficiaries. According to the investigation, even if the insurance company knew about the death of the senior, they didn’t take the initiative to contact the beneficiaries and call action for claim. It is almost always the beneficiary going to the insurance company armed with supporting documents to claim what’s due to them. FYI, unclaimed insurances are supposed to be forwarded to the state as required by law.
To make sure your loved ones get what they deserve, here are the things you and beneficiaries can do:
* Make a written statement of all your life insurances and other assets and have it notarized or ask your family attorney to keep a copy of it. For this, you will need a trusted witness. It is only understandable for seniors to be hesitant in making their fortunes known unfortunately this is the only way to make sure your beneficiaries will get their money otherwise you are leaving them in the dark.
* Be as specific as possible. Don’t make vague statements like “my one and only child” or my “favorite niece” or whatever. State your beneficiary’s name and if possible his or her social security number. This way, the insurance company will know who you’re referring to exactly.
* Update your records on a regular basis. Take note of your personal details like address, contact number, etc, any chances on these you should report or update with your insurance company. If you are having a hard time remembering updates, then do it within the week of your birthday, every single year.
* Sit down and count your benefits. Start from the very recent and go all the way back when you first started working. That may be a whole lot of work and if luck is not heading your way, some of the companies that owe you may no longer be around but hey, it’s worth a try.
* For beneficiaries who worry that their inheritance must be sitting someplace unknown to them waiting to be claimed or worst, suspect that it has already been turned over to the state, check with your state first. Best to start with NAIC or National Association of Insurance System then check with unclaimed property division.
