Insurance

What is Professional Indemnity Insurance? an Easy to Understand Guide

What is Professional Indemnity Insurance? an Easy to Understand Guide

Professional Indemnity Insurance (PI) is difficult to comprehend. However, I’ve devised a guide to make professional indemnity insurance simple.

What is Professional Indemnity Insurance?
Professional Indemnity Insurance is a form of business insurance for professionals who are in industries where others may rely on their professional advice. By being regarded as an ‘expert’ in a field, others may seek legal action against you if they suffer a loss from your professional advice.

For example, if you are an accountant and are responsible for preparing and lodging your client’s tax returns, a failure to lodge the tax returns on time can result in interest and penalties for your client. Your client could take legal action against you for a breach of your professional duty.

Professional Indemnity Insurance may protect you from such action by covering claims made against you, including legal defense costs up to your specified amount of cover, and after taking into account your excess (of course, you would need to look at your policy wording to look at what specifically is covered).

Why Do People Hate Thinking About Professional Indemnity Insurance?
Professional Indemnity Insurance forms the largest percentage of your business insurance expenses. Typically, Professional Indemnity Insurance is a time-consuming process taking up to 12 weeks. Again, it’s expensive and most people don’t know if they are getting the best deal.

This is where companies like BizCover steps in to satisfy your Professional Indemnity Insurance needs. BizCover allows you to get live online quotes in under 2 minutes, and purchase in only a couple more. BizCover also allows business professionals to compare policies from leading insurance providers (AIG, Dual and Vero) to make sure that you’re getting the cover you need. By staying online, you are also benefiting from reduced pricing and costs.

So, make sure you visit BizCover Professional Indemnity Insurance for further Professional Indemnity Insurance info, and get a free 2-minute quote!

Article source:Blog about Business and Finance

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Car Insurance and Your Claims: They MUST Pay!

Car Insurance and Your Claims: They MUST Pay!

To further complicate matters, even if a loss is covered, the policy most likely includes a deductible as well as coverage limits. Depending on the nature of the loss, multiple insurance companies may be involved. For example, if a storm strikes and you have both wind and flood damage, you may have to file a claim with your homeowners insurance for the wind damage and another with the national flood insurance program (if you have flood insurance) for the water damage.

Depending on where you live, your deductible may be higher under certain circumstances. For example, in Florida, your insurance deductible for hurricane damage is much higher than if your home was burglarized. So, will your local insurance company pay or won’t they? Look at it this way, insurance companies DON’T want to pay. They are in business to generate profits and will need to be convinced BY YOU that the claim should be paid. The burden of proof lies on you, the homeowner. This means that you will need to prove your case and do it well. The better prepared and more organized you are, the better.

Documentation for Making Insurance Claim

Start with documentation. You may need to take dozens of photos and provide your direct insurance agent with detailed estimates to counter against the insurance company’s original settlement offer. You may need to demand to see how the agent depreciated your property and negotiate a more reasonable method. While your homeowner’s insurance policy is a contract, the claims process does provide room for negotiations with auto insurance company (more information on best negotiation tactics in How to Contact with Auto Insurance Company? article).

Your best bet is to be prepared for a fight. Your tools in this battle include a detailed home inventory, digital photos and video documenting the damage, estimates from local contractors, and a willingness to demand a better offer. You don’t have to do this alone. In fact, many contractors are willing to be present during the insurance adjuster’s visit to help point out damage that the adjuster might have otherwise ignored. In addition, public home or auto insurance adjusters act as advocates for the homeowner and work on your behalf to negotiate a higher settlement offer.

Arm yourself with knowledge, documentation, and real-world estimates while also considering professional representation and you’ll be better equipped to answer the question, “Will they pay for it?”

Article source:Blog about Business and Finance

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Police Warn Car Insurance Customers to Guard Against Thieves

Police Warn Car Insurance Customers to Guard Against Thieves

Car insurance customers in Essex have been urged not to give opportunistic thieves the chance to break into their automobiles. Police in the area have therefore issued advice on how drivers could best avoid becoming a victim of vehicle crime. They suggested that motorists ensure they only park in safe and well-lit areas to ensure they do not attract unwanted attention from would-be thieves.

Report about automobile insurance customers reaction

Lorna Watson, the south eastern crime reduction officer, also suggested that using security devices is a good way to deter opportunistic criminals. She explained that it takes just one minute for a car thief to steal property left inside a vehicle. “It takes a lot longer and can be frustrating for the owner to deal with the insurance company, have any damage to the vehicle repaired or to arrange alternative transport,” she explained.

Meanwhile, a customers of car insurance companies in Buxton were recently warned by police that they may need to step up their vehicle security measures following an increase in the number of people attacked by vandals.

Author’s note: They are many motor vehicle insurance companies in Buxton, where the biggest one is Swinton Car Insurance company, which slogan is “Take care of the people you love the most for just a few pounds a month. more info Finding the right car insurance can be hard work particularly when there are so many companies around. That’s why Swinton can provide a refreshing change, we compare car insurance prices for you by searching the UK’s top insurers to bring our customers rock bottom prices.”

Article source:Blog about Business and Finance

Make Sure that Your Car Insurance Company Gets Honored

Make Sure that Your Car Insurance Company Gets Honored

However, since car insurance policies can be very complicated, you may not even be covered by your policy if something happens to your car. If your car’s wheels get destroyed and the wheels are not covered by your cheap auto insurance policy, then the car insurance company will have nothing to do with your repair or replacement expenses. This can be a waste, especially since you pay a hefty monthly fee to the insurance company to keep your insurance policy going.

To minimize the chances of you getting a bad deal for your money the next time you run into an automobil accident, be sure that you get the best car insurance rates and ins policy that you can possibly get. The best insurance may not mean the most expensive or most loaded policies, because not everybody can afford to pay such hefty fees. What you do need on the other hand is the best automobile insurance company and quote that your own money can buy and pay for every month.

More than getting the most affordable deal, you should also sign up with an auto insurance company or agent that is ready to help you whenever you find yourself in a tight spot. In this case, cheap doesn’t always mean good because just because insurance is offered to you at an extremely low price means that the company is sure to help and pay what is due their client when the time comes.

When people get into accidents, their insurance agents (if they’re that sort) make it very hard on them and try to wiggle out of paying by arguing that they are not covered by the car insurance policy or that the insurance company should only pay part of the expenses. Ask around with family, friends and people you trust on who they believe the best and most trustworthy companies are before signing.

Article source:Blog about Business and Finance

About Declarations Pages in Auto Insurance

About Declarations Pages in Auto Insurance

To break the declarations page down further, we’ll discuss each aspect presented on the page, and this is done in no particular order, meaning your declarations page may or may not have the same information in the same order listed here. First we’ll mention the auto insurance company’s information on the page. The declarations page will have the name of the insurance company, as well as their contact information including a phone number and address. If you need to contact the company, the information is readily available here and also on the insurance card that you should have somewhere in your car in case it is immediately needed.

Next, you should find your policy number. Your policy number is a way the auto insurance company can identify you without using your name. This lessens confusion as there is typically more than one client sharing the same first and last names. A policy number can include numbers and letters together, or just numbers. You will need to know your policy number any time you want to contact the insurance company. You can also find your policy number on the insurance card.

Information regarding the coverage you have purchased is also included in the declarations page. The coverage you purchased will include the minimal requirements provided by your state, as well as any additional coverage options you felt the need to purchase. Bodily injury liability, property damage liability, personal injury protection, and uninsured motorist bodily injury may be some of the coverage options you purchased that will be listed on the declarations page. Read more about automobile premiums and policies in Auto Car Insurance Premiums section of author’s site.

The cost of each coverage you purchase for your auto insurance policy will also be listed on this page. The price of your policy is determined by individual factors, including the cost of coverage you added to your policy. If you carry additional coverage options past the state’s requirements, you can look at these “extra” options and decide if they fit into your budget, or if you can add more coverage for added protection.

Your deductible amounts may also be listed in the declarations page. A deductible amount is the amount of money you are willing to pay, out-of-pocket, when you make a claim to the auto insurance company. Any time you file a claim and expect the insurer to cover an accident-related cost, the insurer requires you to pay upfront a deductible. This amount can range from 0, to ,000 or higher. The lower deductible you choose for your policy, the more expensive your policy premium will be.

Look for the policy periods on the declarations page to find out when your coverage begins and when it ends. You should also be aware that you have the option with the insurer to automatically renew your policy when it expires. This helps to avoid any time period of not carrying auto insurance, known as a policy lapse. It is illegal to drive a vehicle without proper auto insurance so it is vital that the policy always be in effect.

You will also notice your information, or the policyholder’s information, listed on the declarations page. Your name, address, and phone number will be listed on the page. It will also have information regarding the vehicle(s) you have insured with the company, such as the year, make and model of each vehicle. Always keep this information up-to-date with the auto insurance company so they can contact you easily with any questions they have or information they need.

You may think the declarations page is just one more nagging piece of paperwork, but in actuality it is the most important piece of paper that you have for your auto insurance. You will need to review your declarations page every time your policy renews to make sure no coverage was accidentally dropped or so you know your information is correct. Don’t disregard your declarations page as it comes in the mail or think of it as worthless because you think you already know what coverage is on your auto insurance policy.

Article source:Blog about Business and Finance

Some Tips for Insured on Keeping Your Auto Insurance Premium Rates Down

Some Tips for Insured on Keeping Your Auto Insurance Premium Rates Down

Tips you can use car insurance rates comparison

There are so many ways that you can use to keep your auto insurance rates down and some of them you can use at the same time as other discounts to maximize your savings.

Here are some things that you can ask your auto insurance company for:

- Ask if you can receive a discount if you have more than one type of insurance with their company. For instance, you may find that you can have your auto insurance and your homeowner’s insurance with this company and they will provide you with a combined discount. Carry all of your insurance policies with them, such as auto, home, and life and you may find that you can get even more money off.

- If the driver of the car is a student or is listed as a driver on the car, you may find that you can get a good student discount. This is where the student maintains at least a B average on their report card. You may be required to take that report card to the automobile insurance company each time it comes out, but it really pays off. If grades go down, the discount may disappear until the grades go back up.

- See if there are any safe driver discounts available. When you haven’t had a ticket or an accident, you may find that there are discounts available for you.

- If you are a senior citizen and you’ve not had any accidents in a specific amount of time, there may be discounts available to you.

- You can always raise your deductible to cheaper car insurance premium online from auto insurer. However, you need to keep in mind that doing so will result in a higher out-of-pocket expense if an accident does occur. The standard deductible is 0, but some individuals will go as high as ,000 to save some money on their premium. If you can pay ,000 if an accident occurs, then that will work fine. Just make sure your deductible is not higher than what you can afford in case damage is done to your car and you need to pay it.

- You may wish to shop around. You may find a company that offers the same coverage for a lower price. You always want to compare before you make a commitment.

You want to use all of these tips so that you can save yourself quite a bit of money.

How you can compare auto insurance quotes online?

When finding the right company to do business with, it is very important that you compare. You can do this by calling companies and recording the different rates that they quote you. You can also do this by going to their websites and filling out the forms on their websites to receive quotes for the auto insurance you want. This allows you to compare in a much easier way. Take all of that information and make an informed decision.

Article source:Blog about Business and Finance

Its about economy of scale. When you sign up for healthcare coverage, you join a group of other people to combine your healthcare purchasing power. Your insurer covers the whole group, rather than individuals, so everyone shares the cost of staying healthy.-Stay Smart Stay Healthy See more vidoes at: www.youtube.com
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Buying Life Insurance After Being Diagnosed With Cancer

Buying Life Insurance After Being Diagnosed With Cancer

The American Cancer Society estimates doctors will diagnose over 1.4 million new cases of cancer in the U.S. in 2007, with more than 559,650 cancer-related deaths. If you are among the majority of cancer patients and survive for at least five years following your diagnosis, you may face another fight: buying life insurance.

Buying life insurance for cancer patients is challenging, but not necessarily impossible. Your chances for securing a policy depend greatly on the type, stage and grade of the cancer, and even on the treatment plan. There is a relationship between the rate you’ll receive and the curability of your cancer. Certain types of skin cancer, for example, are considered very low risk by life insurance companies and a skin cancer history may not even impact premiums.

Applicants with common and treatable forms of breast and prostate cancer may be able to get a “standard” rating under ideal circumstances. But patients with a history of leukemia or colon cancer may fall into a “substandard” or “high substandard” rating at best, or receive declines. Anyone with cancer that has metastasized likely won’t be able to obtain a policy.

Dr. Charles Levy, senior vice president and chief medical director of AIG American General Domestic Life Insurance Cos., says, “We’re better and better able to differentiate the risks of individual cancers.” Life insurers like AIG American General have sophisticated tables to determine premiums, where they can factor in cancer types and treatments. The end result is better premiums because applicants aren’t lumped together as an “average.”

Most insurers will not offer a policy to someone who is still undergoing treatment for cancer. Depending on your type of cancer, the life insurer may also want to add a surcharge, also called a temporary flat extra. For example, AIG American General sometimes charges temporary flat extras for two to five years, depending on the applicant’s cancer and treatment. The good news is that although these extra premiums can be expensive, they will automatically disappear after a set period of time.

Cancer insurance risk specialists

While a dedicated life insurance agent will search cancer insurance companies to find insurers that will sell you a life insurance policy, in some cases you may be better off seeking out a broker who specializes in finding life insurance for people who have a history of cancer.

These brokers will know the specific questions underwriters will want answered when considering your application. Many brokers have developed relationships with several insurers, so they know which companies offer the best-priced life insurance policies for cancer survivors. Some brokers have experts who specialize in gathering your medical records and organizing them.

By directing your application to life insurers that will view your application most favorably, these brokers will help you find the most accurate price quotes and the lowest premiums for life insurance. Always check the financial strength of the insurer before you buy any policy and be sure that the agent or broker you choose is licensed in your state.

Life insurance strategies for cancer survivors

If you are a healthy cancer survivor, life insurance is even more feasible. There are things you can do to ensure you’re getting the best premium offers possible for your situation.

1. Gather all possible medical records before you apply, from the first pathology report to medical records to treatment records. That ensures medical underwriters have the most complete picture of you, your health, and your cancer history. Having all those records before you apply for cancer insurance will reduce delays in your application process, because your life insurer is going to request them and will wait for them. The information you provide can garner you better premiums in the end: The less life insurer underwriters knows about you, the more likely they are to have to assume you are the highest risk and offer you high premiums accordingly. According to Levy, “If it’s fuzzy, we’re more likely to err on the side of conservatism.”

2. Make sure you have complied with your doctor’s treatment plans. For example, says Levy, if your doctor asked to see you back in one year and you haven’t been back in four years, get to your doctor for your check-up before you apply for life insurance. Your life insurer is not going to offer you a policy without before seeing the results of that check-up. Similarly, if you’ve had breast cancer and you’re due for a mammogram in December and you apply for cancer insurance in October, your life insurer will likely wait for the results of your next mammogram.

3. Get prices from several companies. Policy costs can vary a great deal among companies.

4. See if you can get group life insurance through a professional, fraternal, membership, or political organization to which you belong.

5. Consider a “graded” policy (one with limited benefits) if you cannot get full death benefits. In the first few years of a graded policy, the company pays only the premiums and part of the face value if the insured person dies of a condition, such as cancer, that existed before the policy took effect. If the insured person dies after the specified grading-in period, the company will pay the full face amount of the policy.

If your cancer has been successfully treated, and you are otherwise in good health, you can likely obtain a cancer life insurance policy. If you can show that you are healthy and your treatments have gone well, several insurers may compete for your business.

Article source:Blog about Business and Finance

American Life Insurance-one of the Most Trusted Company

American Life Insurance-one of the Most Trusted Company

American Life Insurance  the most trusted company which has a reputation of about 87 years. This company is one of the globally recognized life insurance companies and it has a number of branches all over the world which has a vast customer line following. American Life Insurance gives various tax benefits to all its insurance policy holders and it also takes care of all your life insurance related policies like retirement insurance policy, wealth management policy, medical insurance, health insurance etc.

Life insurance basic terms as you know is an important factor in every person’s life and when it comes to life insurance age is not the main criteria when it comes to get your life insured. American Life Insurance also known as AIG insurance company and majority of Americans has insured themselves with this life insurance company. The market value of this company is high and you can find the companies ratings in the financial books due to their vast financial transactions with other financial institutes.

There are two major life insurance policies that this AIG Insurance Company deals with i.e. the Term Life Insurance and Whole Life Insurance. In case of Term Life Insurance the policy taken is for a short period of time and Whole Life Insurance is where you get yourself insured for your whole life.

AIG insurance company is one such life insurance company that charters to the needs of the common person. One of the benefits of getting insured in this life insurance company is that you reap a rich harvest of life insurance benefits on all your life insurance policies which no other life insurance company provides you as this company provides you with the benefits when you are still alive.

This life insurance company in order to increase its relationship with their vast flowing customer’s have started life insurance online services which has made it easy and convenient for them to get themselves and their family members insured staying within the very comforts of their own house. AIG Insurance is one of the most sought of companies and it is a tough competitor to other life insurance companies.

Article source:Blog about Business and Finance

The Higher “On Fire” In Stores Now

Irish Construction Insurance

Irish Construction Insurance

One of the most interesting facts about the Irish Construction industry is that there is no legal requirement for a construction company to hold any from of construction insurance! In fact, the only insurance an Irish contractor is legally obliged to have is basic motor insurance on his/her motor vehicles!

Although there is no legal requirement under Irish law for a contractor to hold adequate Construction Insurance it is extremely important that adequate cover is in place.

One of the most important reasons is the high injury & mortality rate on Irish Construction sites. One major positive of the recent construction boom is the fatality per thousand ratio has fallen in recent years although it is still at an unacceptable level.

For example, in 2001 28% of workplace fatalities were Construction related and the Irish Construction industry is consistently second only to the Irish Agriculture& Forestry Industry.

As many primary contractors require their subcontractors to hold Construction Insurance the reality is that although Construction Insurance is not a legal requirement it is usually a prerequisite to obtaining work on the majority of the countries construction sites so the need for construction insurance is a necessity in everything but law!

Although Construction Insurance is quite a complex field the four main areas of cover are as follows:

• Public Liability Insurance

• Employers Liability Insurance

• Contractors All Risks

• Personal Accident

Public Liability Insurance

Public liability insurance [PL] provides cover in the event that the policyholder is sued by a third party who feels that they have suffered injury or loss as a result of the policyholders negligence (lack of care).

Consider the following examples where Public Liability Insurance will provide cover:

• You run a plumbing company. One day you are called to an office to sort out a problem in their kitchen. Accidentally, you burst a pipe, and flood the office. Your client then makes a claim against you for the damage to their carpet and computer systems which have been damaged by the water.

• You are a building contractor. While walking along scaffolding one of your men drops a piece of equipment which falls to the street, injuring a passing pedestrian. The pedestrian makes a claim against your firm.

Obviously these are very simplified examples and we haven’t discussed the complexities of Products Liability/Liability Law/Duty of Care etc however it should provide a basic understanding of Public Liability Insurance.

Employers Liability Insurance

Employers Liability Insurance [EL] provides cover if any of your employees suffer physical injury or death, and it is proven that as an employer you acted negligently and subsequently could have prevented their loss. If they then decide to pursue you for compensation the insurer will pay the cost of the claim.

Consider the following examples where Employers Liability Insurance will provide cover:

• You run a carpentry company. One of your employees loses a finger while using a chop saw and decides to claim against you for his injury

• You are a scaffolding contractor and are erecting scaffolding around an apartment block. While erecting the scaffolding one of your employees falls and suffers severe bodily injury. He decides to claim against your firm.

Please note that Public & Employers Liability is offered ‘hand in hand’, that is when arranging construction insurance you will need to arrange both Public Liability & Employers Liability Insurance together [Also known as Combined Liability Insurance] as Employers Liability Insurance is not available on a ‘Stand Alone’ basis..

Contractors All Risks Insurance

Contractors All Risks insurance (also known as Contract Works insurance) is an insurance policy specially designed for builders and a number of other trades working at a contract site. Contractors All Risks insurance can include cover for contract works, own plant, hired-in plant and employee’s tools. The main part of the contractors all risks insurance is the contract works section which provides cover for the property being worked on (e.g. new house, etc.). However, cover for the existing property is excluded (e.g. the existing structure when building an extension) and must continue to be insured under its own insurance cover.

Consider the following examples where Contractors All Risks Insurance will provide cover:

• You are a building contractor and are building a house for resale. So far you have spent €200,000 on materials and labour. The property catches fire and is destroyed before it has been completed. • You are groundwork’s contractor and are presently digging foundations for a new housing development. Naturally you leave your excavator on site until the contract is completed however one night your excavator is stolen.

Personal Accident Insurance

Personal Accident Insurance [Also known as Income Protection Insurance] is highly recommended for a sole traders, business partners and company directors as a combined liability policy does not cover any injury caused to a sole trader/business partner while it is extremely difficult for a company director to sue his/her own company. A policy can be tailored to your exact needs and policies include a tax free monthly benefit, a lump sum [capital benefit] and hospital cash.

Consider the following examples where Personal Accident Insurance will provide cover:

• You’re a self employed carpenter with no employees. You cut your hand and are unable to work for eight months. As you have Personal Accident cover you receive a tax free benefit of €1,500 after one month and continue to receive this amount until you return to work.

• Although Personal Accident/Income Protection insurance is no substitute for full time earnings it will provide you with an income if you are unable to earn and it will reduce your financial worries at a time when your recovery should be your number one priority.

Machinery & Plant Insurance

Machinery & Plant Insurance is normally arranged on a case by case basis and provides Accidental Damage Fire & Theft Cover on Machinery. This policy is normally taken by contractors who wish to cover a specific number of items.

Health & Safety Executive

In Ireland the HSE [Health & Safety Executive] have the ultimate authority over Construction Sites and have the ability to close a site if they feel it is a safety hazard. Their primary initiative is the ‘Safe Pass’ – a one day site safety training programme.

Who needs to do Safe Pass awareness training?

Safe Pass is a one-day safety awareness programme aimed at general construction workers, craft workers and “on site” security personnel in the construction industry. The aims of the programme are to:

• raise the standard of safety awareness in the construction industry

• ensure that site personnel after completing the one day awareness programme can make a positive contribution to the prevention of accidents and ill health while working on the site

• maintain a register of personnel who have received training

• provide participants with a FAS Safe Pass registration card, indicating that the holder has attended a formal course in health and safety awareness

Under the Safety Health and Welfare at Work (Construction) Regulations 2006 Safe Pass / Safety Awareness Programmes applies to -

(a) craft and general construction workers,

(b) persons undertaking on-site security work, and

(c) persons or classes of persons as may be prescribed by the Minister.

For more information on Irish Site Safety please visit the website of the Health & Safety Authority www.hsa.ie while for more information relating to Irish Construction Insurance please visit the website of Keystone Insurance www.keystone.ie, Ireland’s premier supplier of Construction Insurance

Article source:Blog about Business and Finance

Luke’s real life auto insurance quote came back at 303 dollars a month. Luke got pissed… and put his new webcam to use. (Like all of our stuff, it’s scripted.)
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How to Collect on Lost Life Insurance Policies

How to Collect on Lost Life Insurance Policies

A relative has just died. He had a life insurance policy with you listed as the beneficiary. There’s just one problem: the life insurance policy is missing. You have no idea which insurance company wrote it.

If you find the missing life insurance policy in the future, are you still eligible to receive the death benefit?

Hope they paid their insurance bills

If you’re a beneficiary and you find the lost life insurance policy shortly after the insured dies (within six months to a year, for example), claiming the death benefit should be trouble-free.

First, determine if the insured had term or permanent life insurance. If the insured held a term policy, you’ll receive the death benefit if he died before the end of the policy term. If he died after the policy expiration date, you would get nothing.

If the insured had a permanent life policy, you’ll receive the money if the death occurred while the policy was “in force,” meaning all premium payments were made up until the time of death. If the death was a while ago, you’ll receive the benefit with interest from the date of death.

If the life insurance policy lapsed — meaning the insured stopped making premium payments before he died — there’s a chance you might get nothing. When a permanent life insurance policy lapses, most insurance companies switch its status from permanent insurance to one of two options:

“Extended term” — The insurance company uses the cash value of the policy to buy a term life insurance policy for the same death benefit using the cash value of the policy. The death benefit will continue for the longest period the cash value will purchase.

“Reduced paid up” — The insurance company will keep the policy in force permanently, but will reduce the death benefit.

Gerry Brogla, an actuary for State Farm, says in the majority of the cases at his company, the permanent policy continues as extended term if it lapses. At State Farm, extended term is the default option for most permanent policies.

If the policy lapses, and the extended-term period expires before the insured dies, the policy is worthless and the life insurance beneficiary will get nothing. If the insured dies before the extended-term period is up, the beneficiary will receive the death benefit. If the policy lapsed because the insured died (thus ending premium payments and causing the insurance to be placed in extended-term status), the beneficiary will still collect the full death benefit, regardless of when the extended term was up. The beneficiary always needs to supply the insurance company with a death certificate to verify the date of death.

There is no time limit during which a life insurance beneficiary must step forward to collect the money, according to Jack Dolan, spokesman for the American Council of Life Insurers. “If a person shows up 30 years after [the insured's] death, the company still makes good on it,” Dolan assures.

What happens if no one ever reports the death?

If the insured dies and the insurance company does not learn of the death, the policy lapses. Insurance companies will take steps to find out why a policyholder stopped making payments.

When an insurance company stops getting payments, it sends letters to the insured informing him the policy may lapse as a result of unpaid premiums. If the letters go unanswered, the company might initiate a search to find the insured. If that comes up empty, the company will then lapse the policy.

If a beneficiary to a policy never steps forward, it unfortunately means the insured paid money to a policy throughout his life and his beneficiaries never see a penny. This is why its a good idea to make sure beneficiaries are aware of any life insurance policies you have.

If you’re lucky, the state may have your money

In some cases when a beneficiary fails to claim a death benefit for several years, the money is transferred to the state where the insurance policy was purchased under the escheat laws.

If a company knows an insured died and it cannot find the beneficiary, it must turn the full death benefit over to the state comptroller’s department within three to five years of the insured’s death. The money is transferred to the state where the insured bought the policy. The money is considered “unclaimed property” and gets lumped in with dormant bank accounts and uncollected rent deposits. The comptroller’s department maintains a database that lists the names and addresses of lost life insurance beneficiaries.

Many states will try to contact life insurance beneficiaries in an effort to pay the death benefits. In Texas, for example, the names and addresses of the beneficiaries are published annually in each county in the state. In New York, the Web site of the New York State Comptroller’s Office of Unclaimed Funds has an online search to find any unclaimed death benefits owed to you. You can find out the procedures in your state by contacting the office of your state comptroller or treasurer.

Keep in mind your chances of finding the policy with the state are slim. The insurance company has no obligation to hand the money over to the state if it’s unaware the insured died. In most cases, it’s the beneficiary who contacts the insurance company.

Also, the insurer only transfers the money to the state three to five years after it cannot find the beneficiary but knows the insured died. If the state doesn’t have the death benefit, it’s likely the insurer is still looking for the beneficiary or doesn’t know the policyholder has died.

Unclaimed death benefits are rarely transferred to the state. Dave Potter, a spokesman for Hartford Life, says less than 1 percent of his company’s death benefits go unclaimed.

Del Chance, a life insurance claims manager at State Farm, says, “Turning over life policy benefits to an individual state after the death of an insured is extremely rare. State Farm utilizes their own search techniques as well as outside vendors to locate lost beneficiaries in the event of the death of one of our insureds. By and large these procedures have always located the beneficiary.

Tips for making sure your life insurance beneficiaries get your death benefit:

1. Give your beneficiaries your policy information. It can be a difficult and awkward conversation, but an important one.

2. Keep all your financial records (especially your life insurance policies) in one place. Don’t force your beneficiaries to search your house from top to bottom after you die.

Tips for looking for lost life insurance policies:

1. Go through canceled checks or contact your relative’s bank for copies of old checks. Look for checks made out to insurance companies.

2. Ask those who may have known about your relative’s finances. Speak with the relative’s lawyer, banker or accountant. Also contact the relative’s insurance agent.

3. Contact your relative’s past employers. They might know of possible group life insurance. The insured might have also purchased supplemental life insurance through work.

4. Check the mail for a year. Premium bills and policy-status notices are usually sent annually.

5. Look at income tax returns for the past two years. Check for interest income from policies or expenses paid to life insurance companies.

6. Contact the Medical Information Bureau. If your relative bought life insurance fairly recently, there might be a trail of the companies to which he applied. The Medical Information Bureau (MIB) maintains a database that might show if insurers requested your relative’s medical information within the past seven years. Record searches can be requested through the MIB’s Policy Locator Service and cost . The MIB says that nearly 30 percent of searches turn up leads.

Article source:Blog about Business and Finance