Unclaimed Property in Life Insurance Policy
Usually, insurers do not have to research whether the insured passed away and give the payment to the beneficiary. But in the case of annuities, insurance companies routinely check the social security death database, and when one of their annuitants has died, they cease payments immediately.
Sometimes, the surviving family members don’t know about the policy and they have to cover the funeral and outstanding debts (for example, medical and household expenses) without the benefit of the money in the annuity. At the same time, most of the insurance companies try to delete the payment from the life insurance policy and ignore the database. Actually, the money stays with the insurance company earning interest. A California annuity fraud attorney may be able to help recover money in annuities.
However, there is no law in California requiring insurers to check the social security death database and pay the beneficiary of a life insurance policy when the insured dies. The best thing for the insured to do is to talk about the policy to the beneficiaries. Then, when the insured passes away, the beneficiaries can directly with insurance company about the payments.
If you have any trouble with your annuity or against your insurance company, contact the Evans Law Firm at (415) 441-8669, or by email at