Getting Your Finances in Order During Tax Season? Notify Life Insurance Policy Beneficiaries of Their Status

NEW YORK, April 10 -- The Insurance Information Institute issued the following news release:

Given that April is tax filing season, and Americans are taking stock of their finances, the Insurance Information Institute (I.I.I) wants consumers to know it is relatively simple to find out if a family member who has died may have left an unclaimed life insurance policy.

"About 99 percent of life insurance policies are paid out promptly to their rightful beneficiaries soon after the policyholder's death," said Dr. Steven Weisbart, the I.I.I. 's chief economist, "Yet that number could rise to nearly 100 percent if all life insurance policyholders simply told their loved ones about the existence of any policies naming them as beneficiaries."

According to the I.I.I., unclaimed life insurance policies are a preventable problem and to address the issues, the Institute recommends that consumer use these 12 steps.

Alternatively, consumers can contact life insurance companies directly to see if an unclaimed life insurance policy exists. Each state insurance department has a listing of life insurance companies licensed to do business in its state. Moreover, the National Association of Insurance Commissioners (NAIC) recently launched a Life Policy Locator Service.

"Before having to go through any of these steps, it's a good idea for grown children to talk with their elderly parents about the existing life insurance policies they have in place now," Weisbart said. "These are necessary, albeit awkward, conversations to have so families can be prepared when the time comes."