life insurance benefits Archives

What Happens to Unclaimed Life Insurance Benefits?

Life insurance is the best way to ensure that your family will have financial security after you’re gone: the benefits that they will be able to claim will help them to pay the bills and stay afloat. But did you know that a small percentage of life insurance benefits go unclaimed by beneficiaries every year? That means that your family could miss out on money that is intended to help them after you’re gone. Find out what happens to unclaimed life insurance money and how you can avoid your beneficiaries losing out.

cartoon of a person with hands up shrugging — *Benefits go unclaimed when your loved ones are not notified of a life insurance policy you took out, or the company cannot reach the beneficiary.*

Why Life Insurance Benefits Go Unclaimed

You might be wondering how this could even happen. Well, the number one reason that life insurance benefits go unclaimed is that people will purchase a life insurance policy but forget to tell their family members that they have done so. After all, if you don’t tell your beneficiaries that you have taken out a policy on yourself, they won’t know that there will be benefits they can claim when you’re gone, meaning they’ll miss out on the money meant for them.

The number two reason life insurance benefits go unclaimed? Family members can also forget that their loved ones have a life insurance policy after they’ve passed, which means it’s important that you keep all of your information regarding your policy easily accessible to your beneficiaries.

What Happens if Your Benefits Go Unclaimed?

The good news is that your life insurance company will typically try to contact your beneficiary if they have not claimed their benefits within a certain amount of time after your passing. But if they can’t reach them, they will follow the legal requirements and turn over the unclaimed insurance money to the state.

Making Sure Your Family Gets Their Benefits

illustration of documents folder with paper in it — *Make sure your family has your life insurance documents so they are aware and can claim benefits when the time comes.*

Insurers will usually try to get your benefits into the right hands, so the best thing you can do to help them do so is to make sure you name a beneficiary, remember to change your beneficiary if necessary, and keep information on how to reach your beneficiary current at all times. In addition, don’t forget to give your beneficiary a copy of your policy, so they will know exactly how to access their benefits when you are gone.

Finding A Great Life Insurance Policy

Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Can I Leave My Life Insurance Benefits to My Pet?

What do you think about when you hear “life insurance”? You probably think about purchasing a policy so you can make sure that your spouse, children, or other loved ones can be financially secure after you are gone. But maybe you have another idea of who you’d like your life insurance money to take care of: perhaps you have a beloved pet you’d want taken care of in the event of your death. While pets can’t inherit money or possessions, some life insurance companies will offer you the option of setting up a trust to ensure that your pet is cared for after you’re gone.

Do You Need A Pet Trust?

If you have a pet that is expected to outlive you, you will need to make arrangements to make sure that it is taken care of after you’re gone. After all, pets are expensive: food, vet visits, etc can cost thousands of dollars a year, which could be a burden for your family or any person who will take on the responsibility of caring for your pet. If you think it will be difficult for your family members, or other designated caregiver, to take on these expenses, you should consider talking to a life insurance company about setting up a trust that will pay out benefits to them for the care of your pet.

Types of Pet Trusts

There are three different kinds of pet trusts that you can choose from, each with its own limits and considerations:

Traditional Pet Trust– With this type of trust, you will name a caregiver for your pet, and give specific instructions on how to take care of your pet. The trust will also designate a separate trustee who will be responsible for managing the money in the trust.
Statutory Pet Trust- With this kind of trust, you will not have the option to give specific instructions for how you want your pet to be cared for. Instead, there will be a designated lump sum of money set aside for your pet that the caregiver will use to care for it, as well as a second person to oversee the funds.
Pet Protection Agreement- This is a legally binding contract that is signed by you and your pet’s future caregiver, but it is not ideal for transferring large sums of money.

Finding An Affordable Policy

Your pet is your companion and best friend, and losing you will be hard enough on them. If you want to make sure your pet is taken care of when you pass, you can consider a life insurance policy that designates someone to take care of your pet, and leaves them the money necessary to do so.

There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Keep Your New Year’s Resolution to Save Money With This Financial Checklist

The new year is here, and you’ve probably made some New Year’s Resolutions, right? Maybe you want to get healthier or break bad habits, but what about improving your finances and making sure your family is going to be financially secure in the future? These things should be just as high on your list of priorities: saving money is always important, even though it might feel like a pretty tough resolution to keep. Fortunately, there are a few simple things you can do to help reduce your yearly spending, including cutting down on some little things to save more money, while also investing the money you save by making these changes in the checklist below.

Check Up On Your 401K

illustration of a hand putting money into a bin that is labeled retirement — *Assess how much money you have saved up in your 401k to make sure you have enough when you retire.*

When was the last time you looked at your 401K, and at how much you’re investing and earning? For example, have you gotten a raise that would allow you to contribute more? This month is a great time to assess how much money you want to put into your retirement fund every year. This way, you can make sure you’ll have enough money put away for when you retire; you can also choose to contribute a little less right now if you need more cash in the short-term.

Review Your Household Finances

Do you get your nails done every 2 weeks or once a month? Are you planning on going on a family trip this year? Do you have a ton of subscription services that you don’t use very often? Now is a great time to review your monthly and annual household finances, so you can look for ways to save money. Are there ways you can budget better and expenses you can cut that are not necessary? If so, trim your household spending, and create a monthly budget you can live with.

How’s Your Credit Score?

January is the perfect time to check your credit score without affecting it. You’re entitled to a free copy of your credit report once a year from each of the three major credit reporting bureaus (Equifax, Experian, and TransUnion), so take advantage of it! Knowing what your credit score is will let you know where you stand if you’re planning on purchasing any big-ticket items. If your free report reveals that your credit score is not that great, create a plan to help increase your credit score, starting with making a resolution to pay all of your bills on time.

Life Insurance Benefits

a case full of hundred dollar bills — *Life insurance can offer you and your family extra money for any unexpected expenses.*

Want to save more money? Want extra cash for those unexpected expenses that pop up out of nowhere? A life insurance policy is a great way to help your family if you or your spouse can no longer help. In addition, if you choose a permanent life insurance policy that offers a cash value, you can borrow from the cash value and use it for your expenses, so you won’t have to struggle to pay your bills, choose one bill over another, or take out a loan.

And if you do have a life insurance policy, now is the best time to review your policy and make sure it still meets your needs, since every stage of your life will have different responsibilities. Determine if you need more or less coverage, and if you have a term life insurance plan, think about if you want to convert it into a whole life insurance policy.

Choosing the right life insurance policy is necessary to ensure that your family gets the benefits they need. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Your Complete & Easy Guide To Filing A Life Insurance Claim

Once you purchase a life insurance policy, you ensure financial security for family members who are left behind. When the time comes to file a claim to receive death benefits, it can be confusing, or just outright overwhelming. Dealing with the loss of a loved one is hard enough and the last thing you will want to deal with is a complicated claims process; worse yet, your life insurance policy could go to waste because you or your family members aren’t sure how to claim the benefits. So why not take the time now to learn how the process works?

Gather Important Document

document with lines on it — *You will need the life insurance policy to make the claims process go more smoothly.*

When filing a life insurance claim, the first thing you’ll need to do is gather and fill out some necessary documents. You’ll need:

Your loved one’s death certificate – insurance companies need to see this so they can verify that the claim is legitimate.
Their insurance policy documents if you have them – it’s ok if you don’t have access to these, but having them will make the claims process go more smoothly. Take this as a reminder to tell your beneficiary where you keep your insurance info, or to ask your loved one where they keep their information!
A claim form – otherwise known as a “request for benefits,” you’ll need to fill out one of these forms, indicating the cause of death, as well as your relationship with the policyholder.
Documents that prove your identity – be prepared to show your driver’s license, social security card, or birth certificate in order to verify your identity.

Contact The Life Insurance Company

After you gather all of the necessary documents, it’s time to get in touch with the insurance company to notify them of your loved one’s passing, and ask them the best way to send them the claim form. Take this opportunity to ask them any questions or raise any concerns you have, so that the process goes smoothly and is not delayed due to a mistake or misinformation. After you send the claim form, you will have to wait for it to be processed in order to get your payout, which can take anywhere from a couple of days to 1-2 months.

Specify How You Want The Benefits

How you receive your money depends on the insurance company and what options for payouts they offer. Typically there are a few ways that you can get the death benefit; the two most popular options are receiving the money as a lump sum or as an annuity, or annual payment for a predetermined number of years.

the word tax in gold — *Any interest generated from the payout will be taxed.*

Understand The Tax Rules

Most people are unaware that death benefits are not taxed, no matter how you choose to receive the money. The only thing to be aware of is that any interest generated from the principal of the payout is usually taxed as ordinary income, which means that the beneficiary will pay taxes on that money at their top marginal tax rate. For example, if you receive your death benefits in 4 payments over 6 years, you would pay tax on the interest generated each year.

What To Do If The Claim Is Denied

Life insurance claims are rarely denied; generally, they are only denied if the policy’s premiums haven’t been paid, if the person who took out the policy lied on their application, or if the cause of death is not covered by the policy (usually suicide or death by recreational drug overdose). If your life insurance claim is denied, but you feel you have made a legitimate claim, you have options. You can:

Contact the insurance company or agent that helped the insured purchase the plan
Contact your state’s department of insurance
Contact a lawyer

It is not easy to think about losing a loved one, or about your own passing and what your family will go through when you are gone, but you can make these difficult times easier by purchasing life insurance to help with cost of living, debts, and funeral expenses. Another way to make things easier? Make sure you’ve got policies from reputable companies that won’t give you any hassle about filing your claims, and that you understand how each policy works – if you work with an agent, they can help you compare companies and explain each policy to you. Consider using online tools to see what is available to you and your loved ones. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Tag: life insurance benefits