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A life insurance policy is one of the wisest investments a person can make. He can get one for estate planning, or you can get one to give assistance to your family in case you die. However, it has been reported that millions of dollars worth of life insurance is unclaimed every year.

The main reason for unclaimed life insurance policies is the beneficiaries not being aware that their loved ones have life insurance. The money that could have been used to pay off outstanding bills or other financial responsibilities is left in the hands of the insurance company, unclaimed. Eventually, this money goes to the state’s Unclaimed Property division. The division will then try to locate the beneficiaries or policyholder by posting in the newspapers or on the web.

Despite the existence of the Internet, many insurance companies still are unable to find the beneficiaries of a policyholder. There have been instances when the policyholder cannot be located by the insurance company, making it impossible for the cash benefit to be given.

Although the division for Unclaimed Properties makes the effort to announce unclaimed insurance payouts to the public, this is still not enough. There is the possibility that the beneficiaries learn about the money years after the policyholder’s death. If after the advertisement, no beneficiary or policyholder calls about the unclaimed insurance, the state or the insurance company will be the ones to profit from the money.

In order to avoid being one of those who are unable to claim their insurance policy, be sure to inform your beneficiaries about it and be sure to supply the insurance company with all the information that they can use in order to locate you and your loved ones/beneficiaries.