Does Life Insurance Ever Expire?

There is generally no time limit on claiming life insurance benefits, as long as the policy was active at the time of the insured’s death. However, there are a few important factors to keep in mind when considering how far back you can claim life insurance benefits:

1. No Expiration on Death Benefit Claims

• Life insurance companies are required to pay out death benefits, regardless of how long after the policyholder’s death the claim is made. This applies to both term and permanent life insurance policies (e.g., whole life or universal life). As long as the policy was valid at the time of death, you or the beneficiaries can file a claim, even decades later.
• Some policies require you to provide a death certificate and may ask for proof of identity as the beneficiary. Once these documents are submitted, the payout process will begin.

   

2. Unclaimed Benefits and State Law

• If the life insurance company is unaware of the policyholder’s death and no claim is made, the death benefit may eventually be turned over to the state as unclaimed property. The timeframe for this varies by state, usually between 3 to 5 years.
• Even after the death benefit is transferred to the state, beneficiaries can still claim it through their state’s unclaimed property office. The National Association of Unclaimed Property Administrators (NAUPA) offers online tools to help search for unclaimed life insurance funds.

   

3. Interest on Late Claims

• Some insurance companies will pay interest on the death benefit if there is a delay in filing a claim. The amount of interest and whether it’s paid depends on the company and state laws, and interest generally starts accruing from the date of the policyholder’s death until the payout is made.

   

4. Reasons for Delayed Claims

There are several reasons a life insurance claim might be delayed:

• Unawareness of the policyholder’s death by the beneficiaries or the insurance company.
• The beneficiary was unaware they were named in the policy.
• Documents or records of the policy were lost or misplaced.
• The policyholder passed away during the policy’s contestability period (typically the first two years), leading to a review by the insurer.

   

5. How to File a Late Claim

• Contact the insurer: If you are the beneficiary of a policy and believe that a claim needs to be made, contact the insurance company with the policy number (if known), the insured’s personal details, and a copy of the death certificate.
• Unclaimed property search: If the insurer cannot locate the policy, or if you suspect the funds may have been turned over to the state, perform a search in the unclaimed property database for your state or use the NAUPA website.

In most cases, there is no time limit for claiming life insurance benefits, and beneficiaries can file a claim even years after the policyholder’s death. The only concern might be if the benefits are turned over to the state as unclaimed property, but even then, they can still be recovered. Contact the insurance company or search for unclaimed property if you need assistance with an older policy.