Reader’s Question:

Are we able to know if a person had a life insurance before he died? Some people don’t have relatives living near to them and when they die, will the insurance company be freed from their responsibilities to the policy holders? Are there cases like that? I’m just curious and it kills me.

Benedict

Albany, NY

Hello, Benedict! That’s true that some people may be confused of how dead people will enjoy their benefits from their policies if nobody knows where he placed his policy documents.

You may check his important documents on his working station or personal cabinets and the safety deposit box, as well. Call agencies that you suspect the person has done business with regarding life insurance, home insurance, investments, retirement planning, etc. You may also contact the family lawyers of your relative who passed away. The lawyer may be informed of the insurances of the dead person.

You may also check his emails if you have an access to the person’s accounts.
Life insurance is often purchased for a purpose of protecting the insured against loss of income, but policyholders commonly fail to inform the beneficiary(s) of the policy’s existence. This may result to policies go unclaimed based on long dormancy periods or lack of awareness. Insurance companies distribute what is rightfully due as stated in the policy, but the responsibility to claim benefits lies with the beneficiaries.

You may also go to the bank where the deceased had an account and check for the regular withdrawals.
If you have more information regarding the owner’s job, try to contact their company and ask.

These are just many scenarios that could possibly trigger you to inform your beneficiaries of your commitment in insurance companies. We can never tell what will happen in the next 24 hours or so, so get ready as often as you could!