Thursday, September 10, 2009

What if a Life Insurance Policy is lost?

Situation:You are a beneficiary to another person's life insurance policy. This loved one dies, but you don't know with which company he/she had this insurance policy. Or, maybe you do, but you find this policy document quite a while after his/her death. What can you do? Can you still collect the amount?
Solution: When the person died, if the policy was paid for, you can collect the benefit amount. In some cases, if the terms and conditions in the policy so allows, even if the person has not paid after some point during the course of the policy, you may still get a benefit - maybe a reduced benefit. It is really important that the beneficiaries know about the insurance and also of its terms and conditions. Again, it is a good practice to keep a note of the company and the agent/relationship manager through whom this insurance policy has been purchased.

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