How to check if your loved one had life insurance

As if losing a family member or close friend isn’t bad enough, handling their estate can present many challenges. If you suspect that your loved one had life insurance, but are not sure how to check, there are some steps you can take.

Losing a loved one is a devastating experience, which can become even more overwhelming if you’re unsure about their financial situation. If you suspect that your loved one had life insurance, but are not sure how to check, there are some steps you can take.

Searching for a lost life insurance policy can be a frustrating process, though certainly worth the effort. We'll talk you through some of the ways you can track down a policy.

What do we mean by lost life insurance?

Lost life insurance refers to a policy that is yet to be claimed after someone has died. This can happen if the policyholder did not inform their family/loved ones about the policy, or if they themselves forgot to keep track of it.

Also, consider that end-of-life dementia or a disability could have prevented the policyholder from keeping track of things. They might not remember purchasing it, it might have been a term insurance policy that was never renewed, or it could have lapsed due to unpaid premiums.

What happens if a life insurance policy is left unclaimed?

When someone purchases a life insurance policy, they do so intending to provide financial security for their loved ones in the event of their death.

However, if the policy goes unclaimed, either because the beneficiaries are unaware of its existence or simply fail to file a claim, the policy does not simply disappear.

In England and Wales, unclaimed life insurance policies become what is known as "Bona Vacantia", meaning vacant goods, which by law passes to the Crown. This means that the estate of the deceased is held by the government until it can be claimed.

How to search for a lost life insurance policy

If you've recently lost a friend or relative and suspect they had a life insurance policy, there are a few ways to search for it:

Look for physical documents

If you know the person as well as you do, you probably have an idea about how organised they are. Are they the sort of person to keep a life assurance policy neatly labelled in a filing cabinet, or maybe in a stack of papers in a box on top of a kitchen cupboard?

Start by going through your loved one's personal files, any other places where important documents may be stored. Basically, any paperwork or documents that may provide clues about an existing life insurance policy.

This can include bank statements, wills, or any other legal documents that might mention an insurance policy.

If you are the next of kin, you can request the release of data from the deceased's email account. Each email provider will have their own process for verification. If successful, you can then check for any emails regarding a life insurance policy.

However, with older people being more digitally savvy than ever before, along with vast improvements to how intuitive and simple online life insurance has become to buy, there’s every chance they could have self-served the policy online - the trouble is, with many people choosing to go paperless, it can be difficult to know even basic things, like who the insurer is.

Contact their employer

If they had a job, reach out to their employer to enquire about any group life insurance policies they may have had. Many employers offer this benefit as part of their employee benefits package, so it's worth checking with them to see if they have cover.

Check with insurance companies

If you know the name of the insurer, you can contact them directly. Provide them with as much information as possible, such as the person's full name, date of birth, and policy number if possible. They may ask for additional documentation or proof of death.

Ask about the policy beforehand

We’re told from a young age that it’s not polite to talk about money, however, it’s such an important part of all our lives, we ought to all break with this old-fashioned attitude.

After all, if a loved one has gone to the trouble of purchasing life insurance, it’s fair to say that it’s something they wouldn’t want to go to waste - especially if they’d been paying for a policy over an extended period of time.

You might be uncomfortable asking questions about life insurance to your loved ones whilst they’re still alive, but it could make all the difference when they pass away.

Depending on their age and how tech savvy they might be, they may have asked help from younger members of the family to help them get an online life assurance quote, so the details you’re looking for could be closer to hand than you think.

Contact the executor of the estate

If you’re really stuck, the executor can contact any known bank of the family/loved ones member, to see if and when any premiums were paid to an insurer who deals in life insurance. In these situations, a little detective work can go a long way.

What information do I need to make a claim?

When contacting an insurer - whether online or over the phone - you'll need to provide some details on the policyholder, such as:

​To file a claim with an insurer, you will typically need to provide them with the original death certificate. You can obtain copies of the death certificate from the General Register Office for a fee, which can be done through Gov.uk.

They may also request medical information from the deceased individual's GP or specialist, as well as other legal documents.

What if the insurer no longer exists?

Depending on when the policy was taken out, there's a chance the insurer may cease to exist or has been bought by another company.

In this case, you can try to find out which company currently holds the policy by contacting regulatory bodies, such as the Association of British Insurers (ABI). They may be able to provide information on which company acquired the original insurer.

You can also go through the Financial Conduct Authority (FCA). They maintain a register of all authorised insurance companies in the UK, so you can check if the insurer is still active.

If the insurer no longer exists and cannot be traced, you may still be able to make a claim through the Financial Services Compensation Scheme (FSCS). The FSCS provides protection to policyholders in case their insurer becomes insolvent.

How can we help?

If you're feeling overwhelmed or unsure about the process of finding and claiming a life insurance policy for your loved one, Cavendish Online can help. Our experienced advisers can provide guidance to any questions you may have.

You can call us on 01392 436193

(Monday to Thursday 9am – 5.30pm, Friday 9am – 5pm)

The search for someone else’s life insurance policy also acts as a reminder to make sure your own affairs are in order, so be sure to tell your family and/or loved ones if you have a life insurance policy and where to find it.

If you're thinking of buying a policy yourself, you can get a free online quote in a matter of minutes. Just enter some personal details to get started.

You may already have a life insurance policy in place but haven’t looked at it for some time. It’s certainly worth having a review to see if it still fits your needs and speaking with us about low-cost life insurance.