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Unclaimed life insurance

What is an unclaimed life insurance policy?

Emma Lunn
Written by  Emma Lunn
5 min read
Updated: 18 Dec 2024

There’s no timeframe for a life insurance claim. If a payout is due, it can be claimed at any point in time.

Key takeaways

  • When someone dies, the executors of their will normally inform the life insurance company

  • Life insurance can remain unclaimed if the executors of the will or the policy beneficiaries are not aware the policy exists

  • There is no time limit on claiming life insurance payouts

  • Money from unclaimed life insurance payouts passes to the Dormant Assets Scheme after 15 years – but beneficiaries can still make a claim

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What is an unclaimed life insurance policy?

Life insurance is a type of insurance policy that provides people named on the policy – beneficiaries – with a cash lump sum in the event of the policyholder’s death.

An unclaimed life insurance policy is a policy with a payout that has not been claimed by the beneficiaries after the policyholder's death.

When someone dies, the executor of the will is usually responsible for checking for any life insurance policies in place. They will do this as part of gathering information on the value of the person’s estate.

If the person does not have a will, the administrator of the estate will usually be the closest living relative. However, other family members and potential beneficiaries, such as cohabiting partners, can also investigate whether any life insurance exists.

Why do life insurance policies go unclaimed?

Life insurance payouts might go unclaimed for several reasons, such as:

  • The insurance company doesn’t know the policyholder has died

Normally the insurer will be informed of the death by the beneficiaries of the life insurance policy or the executors of the person’s will. Alternatively, the life insurance company may make inquiries if policy premiums stop being paid – for example, if the policyholder’s bank account has been closed after their death.

  • Communication gaps between policyholders and beneficiaries

Policyholders often fail to inform their beneficiaries about the life insurance policy. This results in beneficiaries being unaware of their entitlement when the policyholder dies.

  • Difficulty tracing beneficiaries

Sometimes the life insurer does not have up-to-date contact details for the beneficiaries.

  • Death of the beneficiaries

In some instances, the beneficiaries of a life insurance policy may die before the policyholder.

What happens to an unclaimed life insurance policy?

At first, unclaimed life insurance money is held by the insurance company. Assuming it is aware of the death, the life insurance company will try to find the beneficiaries and pay out the claim. To do this it will check the provided contact details and may also use external services to trace people.

There’s no timeframe for a life insurance claim. If a payout is due, it can be claimed at any point in time. However, there is a limit to how long an insurer can hold on to a policy once it knows the policyholder has died.

If a policy is still unclaimed after 15 years it becomes part of the government’s Dormant Assets Scheme and the money goes to charity. This scheme ensures that the money is put to good use even if the beneficiaries can't be found.

However, if you discover a policy after 15 years has passed, you can still file a claim to receive the money, and the life insurance company is obliged to make the payout.

How do you find out if someone had a life insurance policy?

The simplest thing to do is inform your loved ones when you take out life insurance.

You should tell them:

  • The insurer’s name

  • The policy number

  • Who the beneficiaries are

  • The location of the policy documents

Many people, especially as they age, make a ‘death file’ to help their family when they pass away. This typically contains their will, financial documents, a list of financial institutions they hold accounts with, and passwords for online accounts and social media profiles.

Family members often discover a loved one had a life insurance policy when going through this paperwork when administering their estate. Alternatively, they might find paperwork for the life insurance in the deceased person’s home, or notice that payments to a life insurer have been made from the deceased person’s bank account.

Family can find out about employer-provided life insurance by contacting the dead person’s employer. Many companies offer group life cover, relevant life cover or death in service benefit.

Additionally, there are certain tools that can assist in locating life insurance policies, such as the Unclaimed Assets Register (UAR). The Association of British Insurers (ABI) also offers guidance on how to proceed if you suspect a policy exists but lack evidence.

Contacting insurance companies directly can also be effective. Provide them with details about the deceased, including their full name, date of birth, and any previous addresses.

How do you reclaim an unclaimed life insurance policy?

If you discover a life insurance policy was in place and know (or think) you were a beneficiary, you should contact the life insurance provider once you have identified who it is.

To make a claim, most insurance companies will ask for:

  • The policyholder’s name

  • The cause of death

  • The life insurance policy number

  • Your name and details and your relationship to the deceased

If you do not have the policy number, the insurance provider might still be able to locate the policy using the other details provided.

Is there a time limit on claiming life insurance?

No, there is no time limit for claiming life insurance. However, it's generally recommended to file a claim as soon as possible to receive the money faster and complete the administration of the deceased person’s estate.