Insurance regulators have a very big club with insurers and brokers, and they are consumer-centric. First, contact your provincial insurance regulator and seek advice. My recommendation? I had little to offer, and my research turned up little in the way of solutions.
If one beneficiary chooses not to receive the benefits, then the insurance benefit they were paying for should go somewhere – not just left with the insurer. It could be perceived as disrespectful of the insured to not receive or make use of the insurance that they were paying for (by the same token, memory of the insured may be the reason benefits remain unclaimed). The insurance company should not be allowed to simply retain or sit on the funds. There’s three valid reasons I can think of: Nevertheless, there is some urgency to force the insurance company to do something. This ensures that somebody is going to get the funds.īut what if it’s a group or work insurance policy? Regulations are different for group coverage to start with, it appears that the requirements for paying beneficiaries are not as well regulated for group insurance as they are for individual insurance.Īnd in another twist, what happens if one of the beneficiaries is alive and well, but just refuses to claim the benefit? What are the obligations of the life insurance company?Īs far as I can tell, very little. Worst case we would expect the insurance company to pay the funds into the court and basically wash their hands of the issue. If it’s an individual policy, and the beneficiary has passed away, we would expect the unpaid funds to be evenly distributed amongst the surviving beneficiaries. What happens to the rest of the proceeds? 
You pass away, and the company can only pay one beneficiary. Let’s say you have two beneficiaries on your life insurance policy.
ABANDONED LIFE INSURANCE POLICIES HOW TO
And not only did I not know how to proceed, none of the company reps I spoke to knew what to do in this situation either. I’ve just run into a somewhat unique situation regarding life insurance beneficiaries.
James Duncan is a Life Insurance Advisor at Life Insurance.
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