Summary: A beneficiary is the person or organization who receives the payout from a life insurance policy. Tens of millions of dollars in death benefits from life insurance policies go unclaimed each year because beneficiaries lack basic information about their deceased loved one’s life insurance policies. Beneficiaries should know the name of the insurer, the benefit amount, the policy number, and where the policy is stored. If you believe that you are a beneficiary of a life insurance policy, but don’t have the information you need to collect the benefits, the NAIC Life Insurance Policy Locator may be able to help. You should contact your department of insurance with any life insurance related questions. 

How does life insurance work?

• Life insurance pays money, called a death benefit, to beneficiaries if you pass away while the policy is in effect. (Policyholders pay for the policy while they are alive, through premiums.)
• Death benefits help protect people who depend on you financially. 
• How much life insurance to buy depends on the financial needs that will continue after you pass away, like funeral expenses, childcare, debt repayments, medical bills, education costs for your children, and mortgages. 
• Learn more about the type of life insurance policy that is right for you.

What should I know as a life insurance beneficiary?

• If you are named as a life insurance beneficiary, you'll need to know the name of the insurance company, where the policy is stored, the policy number, and the benefit amount. 
• When a loved one dies, a beneficiary may have options for how to receive the death benefit. 
• One option is a single settlement check. 
• Another option may be a Retained Asset Account, which is like a checking account maintained with the life insurance company.
• When evaluating your options, it is important to consult with a tax professional about any potential tax consequences.

What should I know as a life insurance policyholder?

• Have you had a life-changing event such as the birth of a child or a marriage? It’s important to update your policies after a major life event to make sure that you have the appropriate beneficiaries listed.
• Check your policies once a year to make sure that all beneficiaries are included and that the contact information for those listed beneficiaries is correct.
• Read your policy carefully to make sure your personal information is correct and that you included the Social Security or tax ID numbers of all beneficiaries.
• Let your beneficiaries know about the policies.
• Provide beneficiaries or trusted advisors, such as accountants and attorneys, with the name of the life insurance company holding the policy.
• Place a current copy of the policy with your will or other estate paperwork in a safe place where family and beneficiaries will be able to easily find it. 
• Insurance companies generally do not give benefits to minors. Instead, consider leaving the money to an estate or trust that can manage the benefits until the child is of age. 

Where can I go for help with life insurance benefits?

• Contact the department of insurance in your jurisdiction if you have questions about life insurance. 
• The NAIC Life Insurance Policy Locator (LIPL) tool can help beneficiaries locate unclaimed benefits. The tool conducts a search of all participating life insurance and annuity companies. To learn how to use the tool, read the NAIC Consumer Insight, "How to Use the NAIC Life Insurance Policy Locator."