| Decades ago, large underwriters like
Prudential, Metropolitan Life, and John Hancock pioneered
"Industrial Life" policies, also known as
burial insurance. Aggressive marketing to the elderly
poor made it a popular product. In Florida alone, nearly
one million policyholders are entitled to collect
benefits totaling three-quarters of a billion dollars. These types of
policies have a major flaw: they often don't contain a
pay-off date. Policyholders pay indefinitely for a small,
fixed benefit, typically $1-2,000. A National Association
of Insurance Commissioners (NAIC) investigation found as
many as half of all policyholders had made payments
exceeding the value of benefits to be received.
It's worth
noting many policy holders and heirs may be entitled to
an unexpected windfall. As a growing number of mutual
life insurance companies - including MetLife and John
Hancock - convert to stock ownership, policyholders may
be entitled to receive stock, policy credits or cash
payments in addition to policy benefits.
For
assistance locating lost and unpaid insurance policy
benefits, go to
Lost Life
Insurance Benefit Search
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