Lost Life Insurance Policies Prove Problematic, Warns Gary Taffet

PHILADELPHIA, PA, May 17, 2013 (Press-News.org) Life insurance is a means through which an individual can provide for his or her loved ones, even in death--but according to Gary Taffet, a life insurance policy does relatives very little good if they cannot file a claim. Indeed, a common and mystifying problem, faced by individuals around the country, is that of locating a life insurance policy when a relative dies. A recent Fox Business report comments on this issue, noting that individuals often die without their survivors knowing which life insurance company to file a claim with. Taffet has issued a new statement to the press, opining on the Fox Business article and on the issues presented within it.

"Many individuals have enough foresight to invest in life insurance, but not enough foresight to let their relatives know which life insurance carrier they use, or where the applicable paperwork is," muses Gary Taffet, in his press statement. "So where is a relative to begin, following the death of someone who is insured? Is it even possible to file a claim?"

The first thing to do, Fox Business reports, is to seek out the documentation regarding the claim. Assuming the death happened before the policy's expiration date, there is likely a legitimate claim to be filed. If it takes a long time to find the policy, the payout will often be paid with interest. If the insured was not up to date on his or her payments, however, it is likely that the policy lapsed.

It is finding a lost life insurance policy that tends to prove troublesome, the article continues--but there are some strategies that individuals can implement as they seek to track down this critical information. One is to go through cancelled checks or bank statements, to seek out the name of the relative's insurance company. It is also important to check old credit card statements, in case that is how the policyholder paid his or her premiums. Additionally, if the insurance policy was offered through an employer, that employer will usually prove willing to provide the necessary information to the survivors.

"The real takeaway from all of this, though, is that if you have a life insurance policy, you should make sure to record all of the pertinent information about it, and leave all the necessary documentation somewhere your relatives will know to look for it," Taffet says. "Even taking a few minutes to talk to your spouse and your kids about your life insurance policy and carrier can save them a great deal of hassle down the road."

Gary Taffet is a veteran of the life insurance industry, and currently works with Reliance Insurance Group.

ABOUT:

Gary Taffet is a veteran of the insurance and employee benefits administration professions. He currently works with the New Jersey-based Reliance Insurance Group, a national leader in all manner of employee benefits and insurance services. At Reliance Insurance Group, Gary Taffet provides audits and reviews of employee benefit plans, and makes suggestions on how companies can receive better benefits while improving their cost efficiency. Reliance Insurance Group also provides services in health and life insurance brokerage.