Here’s how to find lost life insurance policies

You might think no one could lose track of a life insurance policy. Think again. At one point, it was estimated at least $10 billion in life insurance policies nationwide had gone unclaimed or unpaid.

Many families don’t know if someone took out a life insurance policy. Or they don’t know what company holds the policy. People move around and lose the paperwork.

One might think that if someone dies with an insurance policy that somehow the beneficiary will find out about it and be able to claim the money. But that’s not always true.

Over the years, we’ve heard stories of family members who would receive a check for one policy after the death. But they did not know about other policies at the same insurer. It could take years — if ever — to find out about those other policies.

The National Association of Insurance Commissioners has a Life Insurance Policy Locator Service, introduced in 2016. The national tool has matched 21,530 policies with consumers — uncovering policies with a reported value of $309.2 million.

So how do you start looking for a lost life insurance policy?

No. 1: Dig for paper clues

What you want to find is any kind of paper trail that might uncover a lost or little-known insurance policy for a loved one.

Where to look: Bank statements or old canceled checks could show payments that were made to life insurance companies over the years. Look for paperwork in lockboxes or safety deposit boxes. Ask family members, financial advisers and insurance agents about life insurance policies.

Are there any copies of applications for life insurance policies in files or drawers? An application for a life insurance policy would list other such policies owned at the time of the application. Review copies of the deceased’s tax returns to spot any interest income or expense reported that relates to a life insurance policy.

No. 2: Do a free search

Often, life insurance companies will respond directly to someone only if the insurers have reason to believe that they have a policy or annuity contract in the name of the deceased.

And you’d need to be the designated beneficiary or someone who is authorized to receive such information.

Consumers can do free searches via 29 state insurance departments. State insurance departments do not have records of specific insurance policies. But the departments can assist consumers in finding lost policies for the deceased.

The National Association of Insurance Commissioners, a group of state regulators, helps locate lost policies for those who believe they are beneficiaries, as well as executors, through its “Life Insurance Policy Locator.” See naic.org and click on “Consumers.”

The national system works with insurers that have voluntarily agreed to participate. States with their own systems include Illinois, Michigan, North Carolina, New York, Ohio, Louisiana and Oregon.

No. 3: Check with state’s unclaimed property office

If an insurer knows a client has died but can’t find the beneficiary, the insurer must turn the death benefit over to the state where the policy was purchased. See the National Association of Unclaimed Property Administrators or unclaimed.org to do a search. You’re able to find the state via the site.