If a person with an insurance policy dies, the beneficiaries will not get the money unless they find the policy and deposit the death certificate of the insurer. There is an impression among the people that they get the insurance money automatically after the death of the insurer. If you do not take initiative from your part, it will remain as unclaimed money with the insurance company.

Insurance companies duty is to pay the claim. So when you deposit death certificate of the deceased and insurance money claim, they will investigate whether your claim is genuine and the evidence provided by you is matching with their investigation. If they find any differences, the insurance money will remain unclaimed. Their argument is that they want to make sure that they are paying the money to right people and the money should not go to any wrong person.

What steps needs to be taken by the insurer when he is alive; to make sure that the insured money goes to the people whom he choose as his beneficiaries after his death?

First thing to remember is to intimate the company as well as your employer about your change of residential address if any. Secondly any of your family members or your best friend should know about your insurance policy and where to look for in case of your death. If you have a will, the policy should be mentioned in it. Another thing to remember is that, incase of your beneficiary’s death you should intimate the insurance agent and put another person’s name as your nominee.

In case of insurer’s death, the insurance company will notice the sudden stoppage of premium payment and it will take some actions.

First of all the insurance company will send a letter to insurer’s address mentioning about non-payment of premium. In case of no responds to the letter, either they will make telephone calls or send an agent to the insurer’s address. Once the company came to know about the death of the insurer, they will try to contact the beneficiaries. NOTE: This will happen only when the company is convinced about the insurer’s death. Otherwise the company will keep the money for three to five years depending upon the state law. After wards it will be handed over to the state government. But still right people can claim it.

Suppose you are the beneficiary or the executor the in insurer’s will, and he never mentioned about the insurance policy or the name of the company to you, still you can claim the money if you follow the correct procedure. Normally people tend to forget about the policy and where the file is kept, though they never skip any premium payment every month or when ever it is due. But you will need to do some homework.

Firstly contact all the finance companies, which you think the insurer was having business with. Contact them on telephone. If you are lucky you will find out the one company you are looking for. For all you know that company must have already started looking for the beneficiary. If the deceased had any financial adviser do not forget to contact him. He may be the right person who knows about the insurance policy.

Normal tendency of the people is to go for employer-paid or group life insurance. Keep this in mind while looking for life insurance policy of the insurer. People with a larger life insurance policy will always try to keep the policy papers in safe custody like safe deposit boxes. When all your efforts fail, you can hire a private investigator, which has more resources that you don’t have.

Never leave your hope and let the money remain unclaimed if you think that there are policies and beneficiaries. Try to locate them.