Understanding What Life Insurance Policies Are and Why You Might Have One
Life insurance is a contract between you and an insurance company. You pay regular monthly or yearly payments called premiums. In return, the insurance company agrees to pay a sum of money to people you name (called beneficiaries) when you pass away. This money is called a death benefit.
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Many people have life insurance policies and don't always remember where they got them or what company holds them. You might have obtained a policy through your employer as part of your job benefits. According to the U.S. Bureau of Labor Statistics, about 55% of private industry workers have access to life insurance through their jobs. Some policies are purchased individually from insurance companies. Others come from organizations you belong to, like professional associations, unions, or alumni groups. Still others might have been purchased by a family member and named you as a beneficiary.
Life insurance comes in different types. Term life insurance covers you for a specific number of years, like 10, 20, or 30 years. Whole life insurance lasts your entire lifetime and builds cash value over time. Universal life insurance is a flexible type that combines features of term and whole life. Knowing what type of policy you have matters because it affects how long the coverage lasts and how much the death benefit might be.
There are practical reasons to locate your policies. If you pass away, your beneficiaries will need to know where to find the policy to claim the death benefit. The money from life insurance can help pay for funeral expenses, which average between $7,000 and $12,000 according to the National Funeral Directors Association. It can also help replace lost income or pay off debts like mortgages or student loans.
Practical Takeaway: Write down every way you might have obtained life insurance—through your job, personal purchase, family gift, or membership organization. This list will guide your search.
Searching Your Personal Records and Documents
The first place to look for your life insurance policy is in your own home. Start by gathering important documents you've kept over the years. Look through files labeled "insurance," "financial documents," or "important papers." Many people keep policy documents in a safe deposit box at their bank, a home safe, or a filing cabinet.
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Check for several types of documents that might contain policy information. Look for actual insurance policy documents—these are formal papers from the insurance company with your name, policy number, coverage amount, and beneficiary information. You may also have premium payment receipts or bills showing you paid for life insurance. Bank statements or credit card statements might show regular charges for insurance premiums. Some people receive annual statements from their insurance company summarizing their policy details. Tax documents might mention life insurance if you received a payout or have a policy with cash value.
Pay special attention to any documents from your employer. If you have group life insurance through work, your employee handbook should contain information about it. Look for benefits enrollment forms you signed when you started your job. These forms often have coverage details and beneficiary information. Some employers send annual statements showing your coverage amount.
Don't overlook documents from family members. If a parent, spouse, or relative purchased a policy and named you as beneficiary, you might find information in their personal papers. Letters or legal documents related to estates or inheritances sometimes mention life insurance policies.
Create a checklist of places to search:
- Home filing systems and folders
- Safe deposit boxes
- Home safes or locked drawers
- Email accounts (search for emails from insurance companies)
- Employee benefits documents from current and past jobs
- Tax returns and financial records
- Banking documents showing regular deductions
- Papers from deceased family members or relatives
Practical Takeaway: Set aside two hours to thoroughly search your physical documents and email. Create a folder or notebook to collect any life insurance information you find, including policy numbers and company names.
Contacting Your Employer and Previous Employers
Your employer is often the source of life insurance coverage. Many workers have group life insurance as part of their benefits package without thinking much about it. Contact your company's Human Resources or Benefits department to ask about life insurance coverage. They can tell you if you have a policy, how much coverage you have, and who is listed as your beneficiary.
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When you contact your HR department, have your employee ID number ready. Ask them for the name of the insurance company, your policy number, and a copy of your benefits summary. They should also be able to tell you whether the policy stays with the company if you leave or if it ends when employment ends. Some group policies allow you to convert coverage to an individual policy when you leave the job.
Don't forget about previous employers. If you worked for other companies, they may have provided life insurance too. Think back through your employment history and reach out to former HR departments if you remember company names and contact information. Some larger companies keep records for many years even after you've left. If a company no longer exists, try contacting the company that acquired it or look for successor company information online.
For retired workers, this step is particularly important. If you retired from a job that provided life insurance, that coverage may still be active. Many retirees continue to have group life insurance coverage even after leaving their job, though it might be reduced coverage or require premium payments.
Questions to ask your HR department:
- Do I currently have group life insurance through my job?
- What is my coverage amount?
- Who is listed as my beneficiary?
- What insurance company administers the policy?
- What happens to my coverage if I leave the company?
- Is there a policy document or benefits summary I can receive?
- Do I have any individual life insurance policies purchased through the company?
Practical Takeaway: Contact your current employer's HR department this week. Also create a list of previous employers you worked for over the past 20 years and attempt to reach them about life insurance coverage history.
Using the National Insurance Policy Locator Service
The Medical Information Bureau (MIB) operates a service called the Life Insurance Policy Locator that can help you find policies you may have forgotten about. This service works by searching records of life insurance policies that people have applied for. If you applied for life insurance in the past, information about your application may be in their database.
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Here's how the Life Insurance Policy Locator works: The MIB collects information from insurance companies about life insurance applications people have submitted. When you request a search, the MIB looks through their database for your name and other identifying information. If they find matches, they provide contact information for the insurance companies that have records of policies associated with your name.
To use this service, you can visit the MIB website or mail a request with your personal information including your full name, date of birth, and current address. You'll need to verify your identity. The service is free to use. The MIB will search their database and send you results showing any insurance companies that have records matching your information. You then contact those companies directly to confirm whether you have an active policy with them.
It's important to understand what this service can and cannot do. The MIB only has information about policies people applied for. If someone else bought a policy and named you as beneficiary, that wouldn't appear in an application under your name. The database includes policies from many but not all insurance companies. Very old policies or policies from smaller insurers might not be in their system.
The MIB can be reached through their website at mib.com/life-insurance-policy-locator. You can also request a search by mail. The process typically takes several weeks to receive results by mail, though online requests may be faster. When you contact insurance companies based on MIB results, have your date of birth and Social Security number ready to help them locate your records.
Practical Takeaway: Visit the MIB Life Insurance Policy Locator website and complete a search. Even if you find nothing, you'll have confirmation that you searched this major resource. Keep the confirmation of your search for your records.
Reaching Out Directly to Insurance Companies
If you remember the