What happens to life insurance proceeds if nobody claims them?

Did you know that between 25-50% of all life insurance policies go unclaimed by the beneficiaries?

It is very common for an insured to pass along and for their family to be unaware that they have life insurance.   This happens in many cases because the insured doesn’t tell them about the policy or where the policy information is.  If you were unaware of a policy in existence, it may not occur to you to look for it.  If you are not sure whether someone had a life policy, you probably should try and sort through their papers, check bank stubs, bank statements, safe deposit boxes, etc..  The life insurance company will not try and track the beneficiary down, so it is up to the beneficiary to come forward and claim the money.  If it is not claimed then the insurance company will send the money to the state of the insured.  The proceeds will be held in a trust account, waiting to be claimed.

There is really no master record of life insurance policies out there, so it is easy for someone to pass without a beneficiary knowing.   It is important to keep your loved ones informed of what you have and where the documentation is.  After you have invested the time and money to get the policy, you want the proceeds to go to the person you left it for.  Also, make sure to check to see if the deceased had any life benefits at their place of employment.