The industry is recommending that policyholders take actions to help to make sure death benefits are received.
The life insurance industry has been facing some hurdles across many states as many companies have not made extensive efforts to locate the beneficiaries of policies belonging to individuals who have died.
Insurers are now making a number of changes as states alter their requirements to find beneficiaries.
However, the industry is also recommending that policyholders take a few extra steps to help to make sure that the money that they are paying into their life insurance policies will actually provide payments to their beneficiaries once the policyholders have passed on. Many people are uncomfortable with this type of discussion, but it has led many beneficiaries to be unaware of the fact that they should be receiving payments.
The industry is therefore recommending that policyholders tell beneficiaries about the life insurance policy.
This way, the beneficiaries will know that they are entitled to life insurance payments when the time comes that the policyholder has died. Furthermore, policyholders are also being advised to tell their beneficiaries how they can go about making a claim should the need arise.
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Life insurance policyholders are being alerted to a number of additional steps to make this process easier, at a time that will already be rather difficult for the beneficiary. For example, they should record the policy information (including the number) as well as the name of the insurer and that company’s contact information. This should be kept in a place that is secure and easy to locate, and a copy could be given to the beneficiary if necessary.
Should beneficiaries change their names or alter their contact information, the life insurance company should be advised. This makes it easier for the company to contact the beneficiary at the time that the policyholder’s death has been confirmed, or for the beneficiary’s identity to be verified if a claim is made.
These additional steps will assist life insurance companies in their effort to increase the effectiveness of identifying the beneficiaries of the policies of deceased individuals so that payments can be made.