NAIC Finds Life Insurance Beneficiaries Aren’t Prepared for the Worst
Translation: They don't collect what they're owed
People buy life insurance hoping that their beneficiaries never have to access the benefits. But when the worst happens and beneficiaries need to receive those funds after the death of a loved one, many have no idea what to do. And that means that millions of dollars in benefits go unclaimed every year, according to the National Association of Insurance Commissioners (NAIC).
According to a new survey from NAIC, just 39 percent of baby boomers, 30 percent of Millennials, and 22 percent of Generation Z individuals felt prepared for being life insurance beneficiaries.
Many respondents didn’t even know if they had been named as a beneficiary by someone else: Just 21 percent of Gen Zers and 20 percent of millennials said they were aware. Many also didn’t know where to look for such a policy or even which insurance company backed the policy.
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