Lost Life Insurance Policy Search - Unclaimed Demutualization Payments
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 Global Life Insurance Settlement Payments.
Demutualization Compensation: 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. Payments can be substantial.
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 - went 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 information.
Global Life Insurance Settlement Payments: Heirs of deceased policyholders may be entitled to receive restitution arising from a 2008 audit of nineteen major life insurance companies that revealed insurers failed to pay death benefits to beneficiaries even in cases where they knew, or should have known, the policy holder was deceased. Further, it was determined that in many cases underwriters continued collecting policy premiums by deducting payments from the cash value of the policies. To determine if you are entitled to receive payment go to: Global Life Insurance Settlements
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 outstanding - $62 billion.
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 Global Insurance Settlement Payments - initiate an Unclaimed Life Insurance Policy Benefits Search or select below:
|American Mutual Life / Amerus||ManuLife / Manufacturers Life||Principal Mutual Life|
|Anthem WellPoint||MetLife / Metropolitan Life||Provident Mutual Life|
|Central Life Assurance||MONY / Mutual of New York||Prudential Life|
|Equitable / Axa||Mutual Service Life||Standard Insurance|
|General American Life||Nationwide / Allied Mutual||State Mutual / Allmerica|
|Indianapolis Life||Northwestern / ReliaStar||Sun Life / Clarica|
|John Hancock Life||Phoenix Home Life||Unum Mutual / Unum|
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