Life insurance carriers will probably in the future be more proactive in paying death claims because right now their feet are to the fire. State regulars are banding together to investigate carrier past practices with the National Association of Insurance Carriers is becoming involved.
States are doing this to collect money on unclaimed death claims. Policyholders should take the necessary steps to avoid any delay in their life insurance going unpaid for any unnecessary length of time. Here are a few suggestions:
Contact your life insurance carrier and verify your contact information, and especially the contact information of your primary and contingent beneficiaries. If you need to make any changes to your primary or contingent beneficiaries, request from the carrier the appropriate change form, fill it out and send it back.
Contact your beneficiaries or executor and make sure they know the names and contact numbers of your life insurance carriers. Make sure they know that they will have to file a death claim with the carrier when you pass away.
Contact your life insurance agent and make sure your agent has all the correct beneficiary name and address information. Your agent can play a crucial role in making sure your policy will remain in force for the rest of your life. If it is a term policy, when does the level term period end? What are your conversion options? If it is permanent life insurance, whole or universal life, review your annual statement. What are the guaranteed and non guaranteed cash value projections? Since annual statements are often incomplete, request from the carrier an in force illustration. You can save your policy from lapsing or save yourself thousands of dollars in premium if you know how the policy is projecting and how to manage your cash value.
If you no longer have an agent, you may request to an agent to become your agent of record.