Before giving up a policy—or overlooking a benefit—know the facts.
You paid premiums for a reason. Before surrendering a life insurance policy or allowing it to lapse, understand your options.
And if a loved one has died, don’t assume there was no coverage simply because you cannot find a policy.
These numbers show why asking questions matters.
Nearly $10 Billion Paid Following Regulatory Action
In December 2018, the California Department of Insurance reported that a multistate investigation had resulted in nearly $10 billion in life insurance benefits being paid to beneficiaries across the country. More than $1 billion went to California beneficiaries. These were cumulative results of an investigation that began in 2011—not payments from a single year.
The investigation uncovered a troubling practice: insurers used a federal death-record database to identify deceased annuity holders and stop payments, but failed to use that same database to identify deceased life insurance policyholders and pay benefits to their beneficiaries.
Families deserved those benefits. Regulatory action helped get the money paid.
Nearly $17 Billion in Lost and Unclaimed Benefits Matched
Through July 31, 2026, insurers reported more than 780,000 matches through the National Association of Insurance Commissioners’ Life Insurance Policy Locator. Those matches represented approximately $16.99 billion in life insurance and annuity benefits since the free service launched in November 2016.
The NAIC explains that beneficiaries sometimes cannot find a loved one’s policies—or do not know they exist.
These figures represent reported matches, not confirmed completed payments or an estimate of all benefits still unclaimed.
The practical lesson: missing paperwork does not necessarily mean missing coverage.
Before You Give Up Your Own Policy
If your life insurance policy is no longer needed, wanted, or affordable, pause before making a final decision.
Ask:
- What happens if I stop paying premiums?
- Does the policy have a cash surrender value?
- Are there options for keeping or changing the coverage?
- Could a life settlement be worth exploring?
- How would each option affect me and my beneficiaries?
Ask the insurer to explain the policy’s terms and available benefits. Appropriately licensed professionals can help you explore whether a life settlement is an option.
An existing policy deserves an informed decision—not an assumption that it has no further value.
If You Are Searching for a Loved One’s Policy
Searching for an existing death benefit is different from selling a policy through a life settlement.
The NAIC offers a free Life Insurance Policy Locator. If a match is found and the requester is identified as the beneficiary, the insurance company contacts them directly. Searches may take 90 business days or more. A requester may receive no response if no match is found, they are not the beneficiary, or they lack legal authority to obtain the information.
To find the service, visit the NAIC website and search for “Life Insurance Policy Locator.”
For questions about an insurer’s handling of a claim, contact your state insurance department.
What These Numbers Mean
These figures document substantial benefit payments following regulatory action and matches to lost or unclaimed coverage.
They do not establish how much profit insurance companies make from lapsed, surrendered, or unclaimed policies. They cover different periods and may overlap, so they should not be added together.
The message is straightforward: know what you own, make sure your beneficiaries know coverage exists, and understand your options before giving up a policy.
What Could Your Life Insurance Policy Be Worth Today?
I’m Mel Kaye. I’m part of a professional life settlement team that helps policyowners explore their options.
If you are considering giving up an existing policy, your questions are welcome. Asking questions and learning about the process does not mean committing to sell a policy.
Call, text, or email me to get started. No pressure—just a conversation.