How to Find Out if Someone Has Life Insurance: A Step-by-Step Guide

Need to know if a loved one has life insurance? Follow our guide to discover life insurance policies and secure beneficiaries’ benefits. 

Life insurance is a crucial financial tool that helps ensure the economic security of loved ones in the event of the policyholder's death. However, it’s not uncommon for people to be unaware of whether their deceased loved ones had life insurance policies. Finding out if a loved one has life insurance can be a complex process, but with a systematic approach, it can be manageable, even during a time of crisis or grief. 

How might life insurance help when a loved one passes? 

Before getting into how to figure out if a loved one who passes had life insurance, it's important to note that there are several types of life insurance and each carries different requirements to purchase, offer unique benefits to the policyholder or beneficiaries, and of course, carry varying costs. When thinking about a loved one’s, or your own, end-of-life expenses, there are a few different policy types to consider. These include but are not limited to: Final Expense Life Insurance, Credit Life Insurance, and Term Life Insurance. 

Final expense life insurance

Final expense life insurance, also known as burial insurance or funeral insurance, is a type of life insurance designed to cover end-of-life expenses such as funeral and burial costs, medical bills, or any other debt that may arise after the policyholder’s death. Unlike traditional life insurance policies, which can have higher coverage amounts, final expense insurance typically offers smaller coverage amounts, focusing on the specific needs associated with end-of-life expenses. Often, such policyholders will include policy information along with a detailed description of their final wishes. Some, if not all, of the funeral expenses may be covered, helping to relieve the family of such a financial burden. For a more in-depth look at final expense life insurance, click here.  

Credit life insurance 

Similarly, credit life insurance is also a type of insurance that is awarded after death. However, unlike traditional life insurance policies, credit life insurance is often tied to specific loans or credit obligations, such as mortgages, car loans, or personal loans. It ensures that the outstanding balance of the loan is covered, preventing the borrower's family from being burdened with the debt after the borrower's death. Typically, credit life insurance is paid directly to the credit issuer or debtor, as opposed to a beneficiary or estate, so that the funds are not misused or attributed to the wrong party. You can learn more about credit life insurance in another article.  

Term life insurance 

Lastly, term life insurance provides coverage for a specific period, or "term," such as 10, 15,  20, or 30 years. Unlike whole life insurance, which provides coverage for the insured's entire life, term life insurance is designed to offer financial protection during the years when it's most needed. Term life insurance is ideal for covering specific financial obligations that have an endpoint, such as a mortgage, child-rearing expenses, or college tuition.   

Term life insurance provides a financial safety net for the holder’s dependents, ensuring they are taken care of after an unexpected death. This makes it an attractive option for people looking to help ensure their families' financial security in case of their untimely death. For many, term life insurance is more affordable than other types of life insurance but still offers individuals significant coverage during times of higher financial responsibility. You can read more about Term Life Insurance. 

Why It's Important to Know If Someone Has Life Insurance 

It’s important to know and understand what policies your loved ones have and what they will ultimately cover. We have outlined a few of the policies that may apply to end-of-life matters but now it is important to also understand why knowledge of such policies is important.  

 Here are just a few examples of why it matters: 

1. Financial security: Life insurance benefits can provide financial support to cover funeral expenses, debts, and everyday living costs. With just around 76.4 million Baby Boomers, about 21% of the U.S. population according to Statista, now in their 70s and 80s, there’s a high chance you or a loved one can find yourself dependent on a life insurance policy.  
2. Estate planning: Life insurance proceeds can play a vital role in the overall estate planning process, helping to ensure that assets are distributed according to the deceased's wishes. 
3. Peace of mind: Knowing that there is financial support available can relieve stress during a difficult time and take on some of the heavy burden of final expenses. As a policyholder, it is one less thing to worry about and as a beneficiary, it is an invaluable gift during a rough time. 

Initial Steps to Take 

It may seem intrusive to investigate someone’s personal and financial records, but it is important to remember that your loved one may have chosen to purchase insurance for this very reason. Failing to claim the benefit would defeat their best efforts to prepare for your future. It is important to stick to the task and stay focused on uncovering life insurance policy records such as bills, statements, and anything else that can offer information you will need to make a claim.  

1. Check personal records: Begin by searching through the deceased’s records. Look for any documents related to life insurance. This could include policy documents, payment receipts, bank statements showing premium payments, or correspondence from insurance companies. Does your loved one have a special box or a safe where they keep important documents like the deed to a home or their passport? That might be a good place to start your search. 
2. Review bank statements: Life insurance premiums are often paid regularly. Review the deceased’s bank statements for any recurring payments to insurance companies. These payments can provide clues about the existence and details of a policy. 
3. Examine tax returns: Life insurance premiums are sometimes reported on tax returns. Check the deceased’s recent tax returns for any indications of premium payments. 

Contacting employers and professional associations 

1. Current and former employers: Many employers offer group life insurance policies as part of their employee benefits packages. Contact the deceased’s current and former employers to inquire about any group life insurance policies that might have been in place. Most likely they were required to designate a beneficiary, and you may not be aware that the beneficiary is you or someone else close to you. 
2. Professional associations and unions: Some professional associations and unions provide life insurance as a benefit to their members. If the deceased was a member of any such organizations, contact them to check for any life insurance policies. Keep in mind that a former employer may have changed ownership, had a rebrand to a new name, or may no longer be in business. This may take some investigating but finding a long-forgotten policy makes it a worthwhile task. Another tip is to reach out to a colleague or boss who became a friend. They might have information regarding any employee-managed plans. 

Reaching Out to Insurance Companies 

1. Direct contact with insurance companies: If you suspect that the deceased had a policy with a particular insurance company, contact that company directly. Provide the necessary information, such as the deceased's name, date of birth, and social security number, to facilitate the search. 
2. Use the National Association of Insurance Commissioners (NAIC) Life Insurance Policy Locator: The NAIC offers a Life Insurance Policy Locator Service that can help you find a policy. You can submit a request online, and the NAIC will contact participating insurance companies to search their records. If a policy is found, the company will contact you directly.

Legal and Financial Professionals 

1. Contact the deceased’s lawyer: If the deceased had a lawyer, they might have information about life insurance policies, especially if the lawyer assisted with estate planning. 
2. Reach out to financial advisors: Financial advisors or accountants who worked with the deceased might know of any life insurance policies. 
3. Check the will and estate documents: Review the deceased’s will and any estate planning documents for references to life insurance policies. 

Using Online Databases and Services 

1. MIB Group: The MIB Group maintains a database of life insurance applications. For a fee, they could search their records to see if the deceased applied for life insurance. 
2. MissingMoney.com: This website, endorsed by the National Association of Unclaimed Property Administrators, allows you to search for unclaimed insurance benefits. Insurance companies sometimes transfer unclaimed death benefits to state unclaimed property offices.  

Dealing with the Insurer’s Response 

Once you have located the life insurance policy, you will need to go through the claims process: 

1. Gather necessary documents: Typically, you will need to provide a certified copy of the death certificate, the policy document (if available), and proof of your identity and relationship to the deceased. 
2. Submit a claim form: Insurance companies require a claim form to be filled out. This form will request details about the deceased and the claimant. 
3. Wait for processing: The insurance company will review the claim, verify the details, and process the payout. This can take anywhere from a few weeks to a few months, depending on the complexity of the case. While timelines vary and a lengthy wait can be frustrating, it is helpful to have as much information and documentation available as possible to speed up the process. 

Preventative measures for the future 

To avoid the difficulty of locating a life insurance policy in the future, consider the following tips: 

1. Communicate with loved ones: Ask your loved ones if they own any life insurance policies. Likewise, make sure that your loved ones are aware of your life insurance policies, too, and know where to find the relevant documents.  Knowing this information can eliminate a few of the steps that were listed earlier in this article and can reduce much unwanted stress and aggravation during an already hard time. 
2. Keep records organized: Maintain a central file with all important documents, including life insurance policies, birth certificates, deeds and anything else that proves identify and ownership. Ensure that trusted family members know how to access it. You may even want to summon a good friend to act on your behalf to avoid potential family squabbles that can arise.  
3. Use digital tools: If you are more tech-savvy, there are digital tools and apps available that help you organize and store important documents securely. These can be shared with designated individuals. At minimum, you can use a password secured app to store scanned documents that can be retrieved later on. 

Finding out if a loved one has life insurance can be a daunting task, especially during a time of grief. However, by following the steps outlined above, you can search for and locate any existing life insurance policies. Doing so can provide financial relief and peace of mind during a challenging period. Remember, it’s important to communicate and organize your own life insurance information, too, to help your loved ones avoid similar challenges in the future.