Pennsylvania Insurance Commission Jessica Altman reminded Pennsylvanians of the value of life insurance policies as one option that can provide families with financial safeguards and peace of mind during an already difficult time. The department is encouraging Pennsylvanians to plan ahead and engage in conversations regarding life insurance in recognition of Life Insurance Awareness Month.
“The unexpected passing of a loved one is already a traumatic experience, but the financial fallout from such an event can add to a family’s pain and hardship,” said Altman. “Life insurance can ensure financial security when it is needed most and help provide some comfort when planning for your future.”
Life insurance provides financial protection for your family after you pass away and ensures that dependents and other family members are not burdened with the cost for final arrangements, such as funeral costs. Every day, the 463 life insurers licensed to do business in Pennsylvania pay out $85.1 million in life insurance and annuities to Pennsylvania families and businesses.
“In addition to the importance of life insurance planning, we would also like to take this opportunity to help Pennsylvanians potentially find life insurance benefits to which they may be entitled. A life insurance policy locator available through the NAIC efficiently connects consumers with lost policies and money they’re potentially owed,” said Altman. “We hear often from children, siblings and other family members about a life insurance policy a loved one took out years or decades before that has been lost. This service makes it possible to locate that policy and provide payment to beneficiaries.”
The National Association of Insurance Commissioners developed this Life Insurance Policy Locator service, which asks life insurance companies to search their records to see if an individual had a policy with the company. The insurance company will contact the requester if a policy is found and the requester is named as a beneficiary. Act 48., signed in 2018 by Gov. Tom Wolf, required all companies selling life insurance policies in Pennsylvania to participate in this service. Since the enactment of Act 48, there have been 3,764 matches with claims totaling $52,322,133.94. Prior to this law, insurer participation was voluntary.
“In only a few short years, use of this service has provided over $52 million in life insurance benefits to Pennsylvania beneficiaries, making a real difference to families across the commonwealth,” Altman said. “We encourage anyone that believes that they were the beneficiary on the policy of a lost loved one to consider whether to use this free service available through the NAIC.”
Pennsylvania consumers can access the life insurance policy locator services on the Insurance Department’s life insurance page. Information is also available by calling the department’s Consumer Services Bureau at 1-877-881-6388.
