The life insurance industry says that less than 1% go unclaimed, the department of insurance in several states says otherwise. Several life insurance companies have been discovered performing inadequate due diligence by not surveying the Social Security, Death Master List. Other sources say 1 in 600 may be owed unclaimed life insurance money. Life insurance industry is not the only ones having problems with delivering money owed to beneficiaries; many banks are sitting on millions of unclaimed accounts. And although life insurance companies need to be more vigilant with death claims, it is the responsibility of the policy beneficiaries to file a death claim.
The SS DMF (Social Security Death Master File) is indeed often used by carriers that issue life insurance policies. And some carriers have come under investigation over claims of failing to pay death benefits.
The Catcch 22 is, by Social Securities own admission the DMF often contains erroneous information.
It is not uncommon for SS to terminate benefits because the DMF reported someone as deceased when in fact they are still alive. When this happens it can take months and numerous appeals before SS reinstates you in their system.
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The Catcch 22 is, by Social Securities own admission the DMF often contains erroneous information.
It is not uncommon for SS to terminate benefits because the DMF reported someone as deceased when in fact they are still alive. When this happens it can take months and numerous appeals before SS reinstates you in their system.