Unclaimed Life Insurance Policy Search - Demutualization Payments & Settlement Claims
Unclaimed Life Insurance Policies:
Between one-quarter and one-half of all life insurance policies go unclaimed - worth $2.4 billion annually - because it's up to family members to notify the insurance company when a policyholder dies, and little effort is made to find lost heirs and beneficiaries.
In addition to unclaimed policy benefits, many policyholders and heirs are entitled to Demutualization Compensation and National Life Insurance Settlement Payments.
Demutualization is the process of converting a mutual life insurance company, owned by its policyholders, to a publicly traded stock company owned by shareholders, pursuant to a plan of conversion approved by government regulators.
Many of the nation's oldest and largest life insurers began as mutual insurance companies. Most - including Prudential, John Hancock, MetLife, Equitable, Principal and Mutual of New York - have since demutualized. Mutual life policyholders (and heirs) continue to be entitled to receive whatever policy benefits may be due, but in addition receive stock, cash and/or policy credits in exchange for their ownership interest in the old mutual insurance company.
By law, unclaimed policy benefits, including demutualization compensation, are remitted to the custody of a government trust account until claimants come forward. Government custodians recently collected $22.8 billion in a single year, of which less than $1 billion was reclaimed. The total amount currently available for claim - $62 billion.
The amount paid to each policyholder is based on a number of factors, including length of time the policy has been in force, face value of the policy, and total premiums paid. For many policyholders, the windfall arising from demutualization can be substantial, but millions of missing policyholders and heirs aren't aware they are entitled to receive demutualization compensation.
When John Hancock demutualized, it did not have current
addressed for 400,000 policyholders. Prudential could not find 1.2 million
policyholders entitled to receive compensation, and MetLife estimates 60 million shares of stock arising from its demutualization - worth billions of dollars -
unclaimed. Contact efforts were unsuccessful,
due to name changes after marriage or divorce, unreported changes of
address, expired postal forwarding orders and non-current beneficiary
NationalLife Insurance Settlement Payments:
Heirs of deceased policyholders may also be entitled to receive restitution arising from a recent audit of 21 major life insurance companies that found insurers failed to pay death benefits to beneficiaries even in cases where they knew the policy holder was deceased. Further, it was determined that in many cases underwriters continued collecting premiums by deducting payments from the cash value of the policies. To determine if you are entitled to receive payment go to: National Life Insurance Settlement Claims
► It is highly recommended that current and former policyholders and heirs - the majority of whom are unaware they're entitled to unclaimed policy benefits, demutualization stock, cash, and/or settlement payouts - initiate a search. Go to: Unclaimed Life Insurance Policy Search or select company:
Trace a Life Insurance Company No Longer in Business:
Family members should not assume that because a life insurance company is no longer in business that policy benefits are gone forever. Over the years hundreds of life insurance companies have changed name or merged with others, and policies are still valid. Even if your company failed, benefits up to $300,000 are paid by state guaranty associations. To find out what happened to a company that no longer exists go to: Life Insurance Company Trace
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