FRIDAY, MARCH 4, 2022
Thousands, if not millions, of dollars from life insurance policies go unclaimed every year because no one came forward to file a claim. (In such cases, the money typically goes to the state government.) Why does this happen? In many cases, policyholders neglect to tell beneficiaries about the coverage details.
Another scenario is when policyholders neglect to update their contact information with their insurance provider. If an insurance provider has no way of reaching a policyholder, it is not their responsibility to locate beneficiaries. In fact, it is up to the policyholder to share this information with the beneficiaries, and then up to beneficiaries to file the claim.
In order to ensure that beneficiaries are able to claim what is rightfully theirs, be sure to inform them about policy details. They should have access to the name of the insurance provider, the policy number and any other pertinent details. Beneficiaries should also know that it’s their responsibility to contact the insurer in order to file a claim. In most cases, all they need to do so is the policyholder’s name, address, birth date and the policy number.
When filed appropriately, beneficiaries often receive death benefits within two to 30 days, depending on the type of policy. Also, it’s important to note that a life insurance policy must be active at the time of the policyholder’s death in order for a beneficiary to be able to make a claim. Be sure to never let a policy lapse if you wish for the death benefit to be paid out.
Protect your loved ones for years to come. Call Clarion Pacific Insurance Services at 831-337-4661 for more information on Santa Cruz life insurance.
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