They don't contact your life insurance beneficiaries when you die
Traditionally, life insurance companies wait until policy beneficiaries notify them that an insured person has died. This laid-back approach worked pretty well for them until state regulators discovered that life insurers can easily find out if a customer died, and notify his or her beneficiaries. Insurers already use a Social Security file called "Death Master" to cancel an annuity when a policyholder dies. This benefits the insurer, who stops making annuity payments upon the customer’s death.
Insurance commissioners say there are millions of unclaimed dollars because insurers didn't notify the beneficiaries of these policies after the insured died.
Here are more details on why your life insurance company doesn’t care if you’re dead.
Pages in this slideshow:
- 10 dirty little secrets of insurance companies
- They use a FICO insurance risk score to figure out the price of your auto policy -- but you can't see that, either
- They might use proprietary software to shortchange you on accident injury claims
- They know if your attorney is a wimp
- They sneak percentage-based deductibles into your homeowners insurance policy
- They might replace your lost Pottery Barn items with Walmart merchandise
- They make hospitals charge other health insurance companies more
- They'll force you to buy a more expensive homeowner's insurance policy
- They don't tell you their "preferred providers" may be cutting costs
- They don't contact your life insurance beneficiaries when you die