Unclaimed life insurance: Where it goes and how to get it
Ever wonder if there's forgotten life insurance floating around with your name on it?
Turns out, it’s more common than you think. There’s around $2 billion in unclaimed money sitting in lost bank accounts, life insurance policies, and shares across Australia (Source: MoneySmart.gov.au). That’s billions, with a B.
Some of that could belong to you or your family.
What is unclaimed life insurance?
Unclaimed life insurance refers to payouts or premiums that were never claimed after someone passed away. Maybe the beneficiary didn’t know they were nominated. Maybe no one knew the policy existed. Or maybe the contact info was outdated.
"Life insurance policies can go unclaimed simply because no one knew they existed." (Source: MoneySmart.gov.au)
In most cases, life insurers will hold onto the money for up to seven years. After that, it gets transferred to ASIC (Australian Securities and Investments Commission) as unclaimed money.
How does life insurance go missing?
It happens more often than it should. Some of the most common reasons include:
The policyholder never told their family they had life insurance
No updated beneficiary nomination
Moved house or changed contact info and never updated the insurer
The policy was held through super, and no one thought to check there
It might sound like something you'd never let happen, but when you’re dealing with grief, paperwork gets overlooked. We get it.
"Unclaimed life insurance could mean lost financial security for your loved ones." (Source: ASIC - Unclaimed Money)
Where do you even start?
Let’s say you suspect a relative had life insurance. Maybe you're the executor of their estate. Maybe you just have a gut feeling. Here are your best bets to track it down:
Step 1: Check their records
Bank statements, email inboxes, old employer records, and physical paperwork are all solid starting points. Look for premium payments or any communication with a life insurer.
Step 2: Contact the insurer
If you know which company it might be with, get in touch directly. You’ll need the policyholder’s full name, date of birth, and possibly their address.
Step 3: Use ASIC’s Unclaimed Money Search
The MoneySmart website lets you search for life insurance policies using a person’s name or OTN (Original Transaction Number). If a policy comes up, note the OTN — you’ll need it to claim.
What you need to make a claim
So you found a policy. Now what?
You’ll need:
The death certificate
Proof of identity (yours and the policyholder’s)
Any known policy details
The OTN (if you found the policy via ASIC)
From there, contact the insurer or ASIC to start the process. You’ll submit your documents and wait for the assessment.
"If you’re the executor of an estate, checking for unclaimed life insurance is part of your job." (Source: Services Australia - Deceased estates)
Real talk: Why this stuff matters
Not following up on unclaimed life insurance is like walking away from free money. And in most cases, that money was meant to give your family some breathing room during the hardest times.
Updating your policy details, telling your loved ones about it, and regularly reviewing your nominations can prevent it from going MIA.
If it sounds overwhelming, it doesn't have to be.
We help clients track this stuff down, get the details right, and make sure the money goes where it’s meant to — whether that’s your kids, partner, or someone else who matters.
Quick steps to find unclaimed life insurance
Need help before it goes missing?
If you're unsure whether your policy is up to date, or you want to make sure your beneficiaries actually know what you've set up for them, let’s sort that now.
The only thing worse than not having life insurance? Having it and letting it go to waste.
Resources
MoneySmart - Find Unclaimed Money
Services Australia - Deceased Estates
Australian Securities and Investments Commission (ASIC)