EDITORIAL: Did your loved one have life insurance? This bill aims to help you get what you’re owed

May 24--A few thousand dollars can make a big difference in the life of someone who has lost a loved one.

That's why you buy life insurance. You want to insure that the people you leave behind have some money to pay the bills.

Some of us do a poor job of communicating what our policies are and what company to contact in case of an untimely death. If your loved ones don't know a policy exists, they don't know how to get the money they are owed.

We don't expect insurance companies to hire private investigators to track down beneficiaries, but a little due diligence in finding someone who is owed money should not be too much to ask.

That's what House Bill 302 is about. It expands on a bill passed last year by the General Assembly and signed by Gov. Bruce Rauner.

Like last year's legislation, HB 302 is being championed by Treasurer Mike Frerichs. It would require insurance companies to look as far back as 1996 to identify and pay beneficiaries of policies no longer in effect.

The measure passed in the House 68-47 on April 25 and is now under consideration in the Senate, where Steve Stadelman, D-Rockford, is one of many co-sponsors.

In Illinois, unpaid life insurance benefits are considered unclaimed property, and returning unclaimed property to owners is among the duties of the Illinois state treasurer. Illinois holds unclaimed property in perpetuity until the items or funds are claimed by the owner or heirs.

Treasurer's office press secretary Greg Rivara said there are 237,485 unclaimed life insurance policies statewide worth $255,373,680.

That's a lot of families who could be better off if they had that cash.

A lot of local people would benefit. In Boone County, there are 243 unclaimed policies worth $595,190; Winnebago, 3,139 policies worth $3,994,287; Ogle, 353 policies worth $366.889; Stephenson, 544 policies worth $746,576; Jo Daviess, 151 policies worth $214,399.

It will cost the insurance industry some money to find people, but it's the right thing to do.

If you think you are owed money from a life insurance policy, a lost dividend check or an unclaimed rebate check from a retailer, go to the treasurer's website, illinoistreasurer.gov/ICASH. There is more than $2 billion in unclaimed property. The treasurer's office has paid out more than $220 million in the past two years.

The best solution is to not put your family in a position where it's guessing about what policies you have. Make sure your loved ones know about your finances. Gather important information such as life insurance policies and let your family know where to find it. A bank safety deposit box would be a good place.

But for those who don't take those steps, HB 302 could help you get the money that was meant for you.

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