April 25, 2016

There are many different reasons that you should always consult with a knowledgeable attorney and advisors in the event that you have any kind of a legal issue, and a recent 60 Minutes report regarding investigations into the life insurance industry only highlights this point.

According to audits of major life insurance companies, it has been discovered that there is a systematic practice of behavior avoiding paying numerous beneficiaries. Individuals who take out a life insurance policy typically pay premiums and expect that when they pass away that your loved ones will receive the death benefit. In some recent settlements, however, more than 20 of the nation’s largest life insurance companies have paid over 7 and a half billion dollars in back death benefits.

There are also 35 life insurance companies who have currently not settled and are still under investigation for failing to pay in the event that the beneficiary was unaware that there was a policy, which is not that uncommon. Some beneficiaries never come forward because they do not know that the policy exists.

Working with a knowledgeable advisor and attorney in this situation can increase the chances that your benefits will make their way to the next of kin. Your estate plan should include legal documentation as to who gets what but also go through the process of integrating assets into your plan for maximum benefit.