But the majority of all respondents still lack other basic information, which leads to a significant rate of unclaimed life insurance benefits.
Less than a third of respondents (29%) know the name of their family member’s or significant other’s insurance company and only a quarter know the benefit amount of the policies on which they’re named as beneficiaries.
To help both consumers and financial advisors, the NAIC has developed a free, online “Life Insurance Policy Locator” tool that searches insurers’ databases to help prospective beneficiaries locate life insurance policies and annuities.
The tool has helped consumers claim more than $765 million in benefits since its introduction in 2016, the NAIC said. With the locator, people don’t have to contact multiple companies or agents to find a policy (or wonder whether one exists).
The tool conducts a search of all participating life insurance and annuity companies regardless of the deceased person’s previous state of residency. Consumers can begin searches with as little as a certified death certificate.
The NAIC survey was based on responses from 1,000 consumers polled between January 2 and 13, 2020. Respondents included approximately equal numbers of Generation Z, millennials and baby boomers, the NAIC said.