Accessing life insurance benefits in Illinois will be easier, thanks to a new website and state law signed today by Governor Bruce Rauner. What happens if a family grieving the loss of a loved one is owed life insurance money, but doesn't make a claim for it? In some cases, the insurance companies held onto the money.
A law taking effect in January will require insurers to check a master file to see if anyone with coverage has passed away.
It's an idea that's been heavily promoted by State Treasurer Mike Frerichs, who is being sued by one company that says it has no obligation to proactively find whether a policy-holder has died and to pay out benefits.
Along with his signature, Rauner promoted a new website, the Lost Life Policy Locator Service. It's intended to do just that, to help consumers locate lost life insurance policies. Meantime, Rauner wants even more done on the topic.
In a statement he called on lawmakers and the treasurer to discontinue paying finders' fees to private companies for locating unclaimed life insurance policies. Rauner says thewebsite makes using the firms unnecessary.
