Can I Claim Grandfather's Unclaimed Insurance Policy?

Insurance claims can be made at any time, even years after the death of the policy holder.

The Scenario

Imagine discovering unclaimed old life insurance accounts held by the state for your grandfather, who passed away in 1977. The funds were never disbursed because the address was spelled incorrectly, causing the insurance accounts to be classified as unclaimed. None of his children, including your mother, are alive today, and multiple adult grandchildren exist besides you.

How do you access this money? How is it disbursed?

Finding Unclaimed Insurance Policies

Insurance claims can be submitted at any time, regardless of how long ago the policyholder died.

The first step involves contacting the life insurance company that issued the policy directly.

The National Association of Insurance Commissioners maintains a website to help individuals locate insurance policies. Even if policy proceeds reverted to state custody, claims can still be filed through the Unclaimed Property Administration.

Understanding Unclaimed Property

The National Association of Unclaimed Property Administrators notes that approximately one in ten people have unclaimed cash or property awaiting them. In Texas, the state Comptroller operates a searchable website where residents can look up whether unclaimed property is registered under their name.

Unclaimed or “abandoned” property refers to accounts or assets within financial institutions that have generated no activity or owner contact for one year or longer. After a designated dormancy period passes with no activity, property legally must be transferred to the state.

Billions of dollars in unclaimed property are held by state governments and treasuries nationwide.

Distribution of Policy Proceeds

The distribution of life insurance proceeds follows the contract terms specified in the original life insurance policy document. If the named beneficiaries are no longer living, the proceeds typically pass to contingent beneficiaries or to the estate of the policyholder according to state law.

If you have questions about unclaimed insurance policies or need help with estate administration, do not hesitate to contact The Stegall Law Firm for a consultation.