Lost Life Insurance

There are certain situations which require that a person has life insurance. Accidents happen all the time and you can never know when your investment pays back. There being different kinds of life insurance policies, such as for protection, savings or investments, this is the best opportunity one has to think about their future and about their families’ financial future. In these conditions a lost life insurance policy can be quite problematic. This also stands for the situations in which the benefactor has passed away.

Once you have lost your life insurance policy, there is no way you can prove that you ever had one, if you do not know the company name. There are over 2000 life insurance companies in the United States so it is a thousand times more difficult to claim the benefits. There are a few steps one can follow when found in such a situation, so that they can finally make use of their life insurance. First of all, to prevent this from ever happening to your beneficiaries, the following are a few preventative steps you can take; You can keep your life insurance documents in a safe place such as a Safe Deposit Box. You can give a copy to your beneficiary and hope they keep good records. You can also give this to an attorney who your beneficiaries can contact if something were to ever happen. The least expensive and best method of all possibilities is to register with an online life insurance database that is secure and free. Make sure that the service you use never asks for any proprietary information as the only piece of information that needs to be stored is the company name that holds your life insurance. There is no need for your social security number or any amounts that your life insurance is worth.
The first thing to do after recovering the lost life insurance policy is to check the expiration date and see
whether it was temporary or permanent. If the benefactor’s death occurred prior to the expiration date, the person in question still has a claim, but if the death occurred after the expiration date, the lost insurance policy is no longer valid and has no value whatsoever.
One of the other problems which can appear with the life insurance policy in such cases is that the policy was not fully covered before the benefactor’s death. In such cases, the benefactor’s insurance company usually proceeds in two ways. First of all, the policy turns into a “reduced paid up” one, which leads to the benefit being lower, depending on the cash value amount, or it becomes an “extended term” one, the policy continuing to be valid for the period of time over which the cash value can cover the premiums.
Mostly all the problems disappear once the person finds the life insurance policy as they can now make the claim and they earn their money after filling out the necessary forms and presenting the necessary certificates, in case there are any to be presented. Of course, in case there should be any questions to address or misunderstandings, the person in question can always turn to their lawyer or to the insurance company. Any lost life insurance can cause a lot of problems, therefore, one should pay attention to such details and prevent such a tragedy, especially since a lost life insurance policy involves money and one usually covers amounts of money that are not to be neglected.


Until next time Michael Hartmann
www.findyourpolicy.com

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