However, every year there are thousands of policies worth billions that remain unclaimed due to policyholders not informing their loved ones about them or having a will that can make sure that the payout lands in the right hands. Here is what you need to know when it comes to unclaimed policies.

What happens to an unclaimed policy?

If you are, indeed, a beneficiary, the financial services company holding your monies may not take ownership of your unclaimed assets – no matter how much time has elapsed. Insurers are required to keep trying to make contact with beneficiaries. However, this can be difficult if there are no beneficiaries listed or the beneficiaries have passed on.

This process starts six months after the claim becomes payable and must be repeated after three years if this first attempt is unsuccessful. Family members of the policyholder can make attempts to contact insurers to check if their loved one had a policy with them, but this could be a shot in the dark.

If the insurer is still unable to locate beneficiaries at this stage, they are required to try yet again after 10 years have passed. After this, they will be required to engage an external tracing agent (unless the cost of doing so is greater than the actual amount of the claim); plus, they need to make sure that your unclaimed benefits keep growing. It is only after 100 years that a company may assume that there are no longer any beneficiaries; after this time, the funds must be invested in CSI projects.

How can I make sure that my policy doesn’t go unclaimed?

While insurers will do everything in their power to make sure that your policy payout is paid out to the right people, it is vital to keep your information up to date. 

Choosing a list of beneficiaries is the first step but keeping this list up to date by updating your policy every year or whenever major changes happen is crucial. You can also have a legal will in place that can give you more control by making sure that your loved ones are contacted, no matter what happens to you. 

All investments and policies  should be listed and stored in a safe place to make it easier for your loved ones to find and place a claim. 

Other considerations

Tracing policies and investments that a loved one has had is still possible. Going through their documents and any communication that may mention this is one route to take. Alternatively, you can search the website of the Association for Savings and Investment South Africa (ASISA) for lost policies. Make sure that you have the relevant information such as their I.D number and death certificate to help make the process smoother for you.