A CONSUMER GUIDE TO
LIFE
INSURANCE
A CONSUMER GUIDE TO
LIFE
INSURANCE
INSURANCE ADMINISTRATION
A CONSUMER GUIDE TO LIFE INSURANCE
Maryland Insurance Administration • 800-492-6116 • www.insurance.maryland.gov
TABLE OF CONTENTS
Who We Are ....................................................1
How We Help Consumers..........................................1
Resources for Consumers ..........................................2
Life Insurance Basics .............................................2
• e Need for Life Insurance ...................................2
• Choosing e Right Amount ..................................3
• Types of Life Insurance .......................................3
• Tips on Buying Life Insurance..................................4
Frequently Asked Questions ........................................5
• General Life Insurance Questions ...............................5
• Term Life Insurance Questions .................................6
• Permanent Life Insurance Questions .............................7
Considerations Before You Sell Your Life Insurance Policy..................9
Information for Beneciaries.......................................13
• Retained Asset Accounts (RAA) and Other Payment Options .........13
• Identifying Missing or Old Life Insurance Policies..................16
Special Considerations for Military Personnel ..........................17
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A CONSUMER GUIDE TO LIFE INSURANCE
WHO WE ARE
e Maryland Insurance Administration is the state agency that regulates the
business of insurance in Maryland. If you are having a problem related to
insurance, the MIA will try to help you solve it.
HOW WE HELP
CONSUMERS
We provide assistance to consumers, businesses, health care providers (doctors and
hospitals) and producers (agents and/or brokers) in all areas of insurance. is
includes life, health, disability, automobile, homeowners, and property.
• We can provide you with answers to your general insurance questions and
suggest actions or processes that you may follow to address and resolve
your insurance questions or problems, as well as questions you should ask
when shopping for insurance.
• We can provide you with educational materials (such as homeowners and
automobile consumer guides) to help you understand dierent types of
coverages and your policy rights and obligations.
• We can provide you with guides to help you compare rates among
insurance companies writing automobile, homeowners, and health
coverage for small employers, as well as for Medicare supplement
insurance policies.
• We may be able to investigate any circumstance that you bring to our
attention, in writing, to ensure that the companies and individuals engaged
in the business of insurance comply with Maryland laws and regulations.
• We may be able to investigate written allegations that your insurance
carrier, insurance producer (agent) or other entity engaged in the business
of insurance:
- did not pay or authorize payment for medically necessary services
- has improperly denied or delayed payment of all or some portion of
your claim
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A CONSUMER GUIDE TO LIFE INSURANCE
- has improperly terminated your insurance policy
- has improperly raised your insurance premiums
- has made false statements to you in connection with the sale of
insurance or the processing of insurance claims
- overcharged you for services, including premium nance charges.
RESOURCES FOR
CONSUMERS
e MIA produces consumer guides, rate comparisons and frequently asked
questions related to various types of insurance. e following is a sample list of
available publications:
• Consumer’s Guide to Homeowners Insurance
• Consumer’s Guide to Automobile Insurance
• Annual Premiums for Medicare Supplement Policies
• An Insurance Preparedness Guide to Natural Disasters.
You can access this information in several ways:
• Download from our website, www.insurance.maryland.gov, on the
Consumer Publications page.
• Call or write to us and we will mail copies to you.
• Visit our booth at any number of community events around Maryland.
• Find these printed materials at various state and local agencies.
LIFE INSURANCE BASICS
THE NEED FOR LIFE INSURANCE
Your need for life insurance varies with your age and family responsibilities. It is a
very important part of nancial planning. ere are several reasons to purchase life
insurance. You may need to replace income that would be lost with the death of a
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A CONSUMER GUIDE TO LIFE INSURANCE
wage earner. You may want to make sure your dependents do not incur signicant
debt when you die. Life insurance may allow them to protect assets versus selling
them to pay outstanding bills or taxes.
Consumers should consider the following factors when purchasing life insurance:
• Medical expenses incurred prior to death, burial costs and estate taxes;
• Support while surviving family members try to secure employment; and
• Monthly bills and expenses, day-care costs, college tuition and retirement.
CHOOSING THE RIGHT AMOUNT
Some insurance experts suggest that you purchase ve to eight times your current
income. However, it is better to ask yourself these questions to determine a more
accurate amount:
• How much of the family income do I provide?
• If I were to die, how would my survivors, especially my children, get by?
• Does anyone else depend on me nancially, such as a parent, grandparent,
brother or sister?
• Do I have children for whom I would like to set aside money so they can
nish their education in the event of my death?
• How will my family pay nal expenses and repay debts after my death?
• Do I have family members or organizations to whom I would like to
leave money?
• Will there be estate taxes to pay after my death?
• How will ination aect future needs?
TYPES OF LIFE INSURANCE
All policies are not the same. Some provide coverage for your lifetime and others
cover you for a specic number of years. Some build up cash values and others do
not. Some policies combine dierent kinds of insurance, and others let you change
from one kind of insurance to another. Some policies may oer other benets while
you are still living. ere are two basic types of life insurance: term insurance and
permanent insurance.
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A CONSUMER GUIDE TO LIFE INSURANCE
TERM INSURANCE
Term insurance covers you for a term of one or more years. It pays a death benet
only if you die in that term. Term insurance generally oers the largest insurance
protection for your premium dollar, but generally does not build up cash value to
use in the future.
Term insurance generally has lower premiums in the early years. You may combine
cash value life insurance with term insurance for the stage of life when you most
need to replace income with life insurance for your survivors.
You can renew most term insurance policies for one or more terms, even if your
health has changed. Each time you renew the policy for a new term, the premium
may be higher. Ask what the premiums will be if you continue to renew the policy
and whether you will lose the right to renew the policy at a certain age. For a higher
premium, some companies oer you the right to keep the policy “in force” for a
guaranteed period at the same price each year. At the end of that time, you may
need to pass a physical examination to continue coverage and premiums
may increase.
You may be able to trade term insurance policy(ies) for a cash-value policy during a
conversion period even if you are not in good health. Premiums for the new policy
will be higher than you have been paying for the term insurance.
PERMANENT INSURANCE
Permanent insurance (which includes types such as universal life, variable universal
life and whole life) provides long-term nancial protection. ese policies include
both a death benet and, in some cases, cash savings. Because of the savings
element, premiums tend to be higher.
TIPS ON BUYING LIFE INSURANCE
• Make sure you feel condent in the insurance agent and company and
verify that they are appropriately licensed with the Maryland Insurance
Administration.
• Decide how much you need, for how long, and what you can aord to pay.
• Learn what kinds of policies provide the benets you need and pick the
one that is best for you.
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A CONSUMER GUIDE TO LIFE INSURANCE
• Do not sign an application until you carefully review it to be sure the
answers are complete and accurate.
• Avoid buying life insurance unless you intend to stick with your nancial
plan. It may be very costly if you quit during the early years of the policy.
• When you buy a policy, make the check payable to the company, not
the agent.
FREQUENTLY ASKED
QUESTIONS
GENERAL LIFE INSURANCE QUESTIONS
WHO CAN TAKE OUT A POLICY ON MY LIFE?
Only someone who has an “insurable interest” can purchase an insurance policy
on your life. at means a stranger cannot buy a policy to insure your life. People
with an insurable interest generally include members of your immediate family.
In some circumstances, your employer or business partner might also have an
insurable interest.
Insurable interest also may be proper for institutions or people who become your
major creditors.
MUST MY BENEFICIARY HAVE AN INSURABLE INTEREST?
No. If you buy a policy on your own life, you become the owner of the policy. As
the owner, you can name anyone as beneciary – even a stranger!
WHAT ABOUT COMPANIES THAT ADVERTISE “NO PHYSICAL EXAM?”
e insurance may be more expensive than if the company required a physical.
Although there is no physical, you will probably have to answer a few, broad health
questions on your application.
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A CONSUMER GUIDE TO LIFE INSURANCE
SOME LIFE INSURANCE ADS CLAIM “YOU CANNOT BE TURNED
DOWN.” WHAT’S THE CATCH?
Such ads are referring to “guaranteed issue” policies, where the company asks no
health history questions. e company knows it is taking a risk because people
with bad health could buy their policies. e company balances the risk by
charging higher premiums or by limiting the amount of insurance you can buy.
e premiums can be almost as much as the insurance. After a few years, you could
pay more to the insurance company than it will have to pay to your beneciary.
Such policies may oer only the return of your premiums if you die within the rst
couple of years after you buy the policy.
TERM LIFE INSURANCE QUESTIONS
WHY IS TERM LIFE INSURANCE OFTEN CALLED
“TEMPORARY” INSURANCE?
Insurance agents sometimes refer to term insurance as “temporary,” because the
term policy lasts only for a specic period. It is probably no more “temporary” than
your auto or homeowner insurance. Just like term, those types of policies provide
coverage for a specic period of time, and must be renewed when that period ends.
WHY ARE SOME INSURANCE AGENTS RELUCTANT TO SELL
TERM INSURANCE?
Some agents believe term coverage is risky because buying a policy in the future
could be dicult if your health deteriorates or you cannot aord the higher
premiums. Commissions also could be a reason for an agent to discourage a term
policy. e agent often makes less money for selling term than for other forms of
life insurance.
WHAT DO I GET WHEN I BUY TERM INSURANCE?
You have bought and received the company’s guarantee that if you die during the
term of the policy, it will pay a death benet to your beneciary.
DO I GET ANY BENEFIT IF I DON’T DIE?
e policy will not pay any benets if you do not die within the covered term, but
some people think that the peace of mind that comes with buying such a policy is
a benet in and of itself. With term life insurance, if you die during the term, you
know the company will pay your beneciaries.
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A CONSUMER GUIDE TO LIFE INSURANCE
AN INSURANCE AGENT HAS SUGGESTED THAT I BUY TERM INSTEAD
OF WHOLE LIFE. DOES IT MAKE SENSE TO BUY TERM AND INVEST
THE DIFFERENCE?
It depends on the circumstances, including your goals, nancial resources, the
policy terms and conditions. You should consider these factors as well as the
following in making your decision:
• As you get older, term premiums increase to keep up with the cost
of insurance;
• By investing the dierence, you could use your investment to pay the
higher cost of insurance in the future;
• Spending the dierence may cause you to dip into other savings to pay
higher premiums; and
• If your health deteriorates, you may not be able to buy a new policy.
• Whether a permanent life insurance policy better ts your needs.
AN INSURANCE AGENT HAS SUGGESTED I SWITCH TERM
COMPANIES EVERY COUPLE OF YEARS TO TAKE ADVANTAGE OF THE
COMPANY’S PROMOTIONAL RATES IN THE FIRST COUPLE OF YEARS.
IS THERE ANYTHING WRONG WITH THAT?
Although you are free to switch companies, you should be aware that when you
switch policies, you start a new two-year contestability period any time you switch.
If you die during that two-year period, the insurance company can (and probably
will) investigate the statements you made on your application. If you’ve given
inaccurate or incomplete answers, the company may (and probably will) refuse to
pay the death benet.
PERMANENT LIFE INSURANCE
QUESTIONS
HOW MUCH CASH VALUE IS IN MY POLICY?
Read your policy. It has a table of cash values that should provide the answer. Call
your agent if you are still not sure of the cash value amount.
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A CONSUMER GUIDE TO LIFE INSURANCE
WHAT HAPPENS TO THE CASH VALUE IN MY POLICY WHEN I DIE?
When you die, the insurance company will pay the death benet. No matter how
much cash value you may have had in the policy the moment before you died, your
beneciaries can collect no more than the stated death benet. Any loans (including
interest) taken out against the policy that you have not repaid will be subtracted
from the death benet.
e result: your beneciary could wind up with less than the face amount of
the policy.
e exception: some whole life policies pay both the death benet and the cash
value when you die.
WHEN I BOUGHT MY LIFE INSURANCE POLICY, THE AGENT SAID IT
WOULD BE “PAID UP” AFTER 10 YEARS, BUT IT’S BEEN THAT LONG
AND I’M STILL GETTING BILLS. WHY?
Your contract (insurance policy) may provide for guaranteed interest rates and/or
dividends the insurance company will pay on your premiums. e company must
stand behind items that are guaranteed in the contract. Usually your premiums
must make very high earnings before they will “pay up” your policy. Promises of
“paid up” life insurance are illegal when based on non-guaranteed values. If you
have documentation of the agent’s promise, the Maryland Insurance Administration
may be able to help. Documentation would include any material in writing
containing the promise -- even an informal, handwritten note or a similar notation
by the agent.
I UNDERSTAND MY PERMANENT POLICY WOULD BE “FULLY PAID UP”
AT AGE 65. WHAT DOES THAT MEAN?
“Fully paid up” means that you have made enough premium payments to cover the
cost of insurance for the rest of your life.
WHAT HAPPENS TO THE CASH VALUE AFTER THE POLICY IS FULLY
PAID UP?
e company plans to use the cash value to pay premiums until you die. If you take
cash value out, there may not be enough to pay premiums. e company could
require you to resume paying premiums, or reduce the amount of the death benet
to an amount that the remaining cash value will support.
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A CONSUMER GUIDE TO LIFE INSURANCE
I HAD A POLICY THAT WAS PAID UP; NOW I’M TOLD I DON’T. WHAT
CAN I DO?
You may have signed papers that permitted the cash value of your paid-up policy to
be used to pay for another, larger policy. If you’re not sure or can’t remember, call
the insurance company.
WHAT IS A “PARTICIPATING” POLICY?
at is a policy that may pay you dividends. You have a chance to “participate” in
the company’s earnings. A life insurance dividend is actually a refund of part of
your premium. When a company collects more money in premiums than it needs
to pay death claims and maintain the insurance pool for future claims, the company
may pay dividends at the end of that year.
FOR 10 YEARS, I PAID THE INSURANCE COMPANY $1,000 EVERY
YEAR. THAT’S $10,000! BUT WHEN I CASHED IN THE POLICY, THEY
SENT ME ONLY $5,800. WHERE DID THE REST OF MY MONEY GO?
e rest of the money paid for insurance. You were only entitled to the cash
surrender value — that is, the amount you had paid to “pre-fund” insurance in your
old age. e amount would have been even less if you had borrowed money that
had not yet been repaid.
CONSIDERATIONS
BEFORE YOU SELL YOUR
LIFE INSURANCE POLICY
More and more, consumers are discussing the possibility of selling their life
insurance policies. Before you decide to sell your policy, you should consider several
factors. Before you sign anything, meet with your nancial advisor, accountant,
estate planner or tax advisor, so you can nd out the tax and investment
implications of your decision.
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A CONSUMER GUIDE TO LIFE INSURANCE
Arrangements to sell insurance policies have a number of dierent names. ey
are most frequently referred to as viatical settlements or life settlements. In these
agreements, the owner of the policy sells the policy to a life settlement company,
sometimes referred to as a viatical settlement provider, for cash. e amount paid
will be more than the policy’s cash surrender value but less than the death benet.
ese arrangements were developed initially for people with life-threatening
illnesses; however, they are now also being used when:
• the life insurance policy is no longer needed or wanted;
• the premium payments have become unaordable;
• the policyholder is considering surrender of the policy;
• the policy is about to lapse;
• there is a change in estate planning needs, nancial circumstances or life
circumstances, such as divorce or death; or
• the policyholder needs funds to pay for health care or long-term care.
In these transactions, the existing policy is purchased by a life settlement company
that either holds the policy to maturity, pays the required premiums and collects
the net death benet or resells the policy – or sells interests in multiple, bundled
policies – to hedge funds or other investors.
Maryland law requires that brokers who sell viatical settlements and life settlements
have a license to sell life insurance from the Maryland Insurance Administration (MIA)
and that they are registered with the MIA. A list of registered brokers and settlement
companies is available on the MIA’s website at www.insurance.maryland.gov. Remember,
the broker works for you and has a duty to look out for your best interest.
FREQUENTLY ASKED QUESTIONS
HOW MUCH MONEY WILL I GET IF I ENTER INTO ONE OF
THESE ARRANGEMENTS?
e amount of money you receive will depend upon a number of factors, including
your age and medical condition, the type of life insurance policy (e.g., universal
life, whole life, term), amount of the death benet, dollar amount of premiums
necessary to keep the policy in force, and amount of compensation the life
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A CONSUMER GUIDE TO LIFE INSURANCE
settlement broker receives. You should contact several brokers or companies before
selling your policy to obtain the best oer. If you have a life insurance policy with a
cash value, the amount you receive should be greater than the cash surrender value
of your policy. You should contact your insurance company if you do not know the
cash surrender value of your policy.
SHOULD I DO ANYTHING TO PROTECT MY MONEY WHEN I AGREE TO
SELL MY POLICY?
You should require the broker to put your settlement proceeds into an independent
escrow account to protect your funds during the transfer.
WILL MY PRIVACY BE MAINTAINED?
During the application process, you will be required to sign an authorization
releasing your medical and other personal information to potential buyers (i.e.
life settlement companies). You also may be asked periodically to update your
health status information. Once this information is obtained, it may be shared
with other parties, including lenders or third party investors. Be sure to carefully
read your application, contract and all other material you receive to determine
what procedures the life settlement company uses to maintain and protect the
condentiality of your personal information.
Before you agree to the release of your medical and personal information, you
should know who is involved in the transaction and thoroughly check them out.
If you negotiate through a life settlement broker, nd out the name of the life
settlement company involved in the transaction. You should also inquire about the
privacy policy of all parties involved in the transaction.
ARE THE PROCEEDS I RECEIVED TAXED?
You may incur tax consequences from the transaction. You should consult a tax
advisor and/or nancial advisor to review any potential tax consequences from
the transaction before you sign anything. e sale of your policy also may impact
your ability to receive state or federal public assistance, including Medicaid. Also,
you should ask whether any of your creditors could make a claim against your
settlement. You should talk with the government agency assisting you to see if the
settlement will impact your assistance.
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A CONSUMER GUIDE TO LIFE INSURANCE
WHAT ARE THE TRANSACTION COSTS?
e commissions paid to the brokers and other nancial professionals involved in
the transaction can be as high as 30 percent. You should ask your broker how he is
compensated and what his rate is, as well as whether any other parties will be paid
a commission and what the commission rates are for those persons. Brokers also
are required to disclose to you all oers, counteroers, acceptances and rejections
relating to the sale of your policy within 72 hours of their receipt by the broker.
Under Maryland law, brokers are required to explain in writing, within 72 hours
before the contract is signed by all parties, the amount of the broker’s compensation
and how it is calculated. Also, you should be careful when brokers pressure you to
use the proceeds from the settlement to purchase another insurance product. In
many instances, the broker will be able to earn two commissions from this type of
arrangement.
ARE THERE OTHER OPTIONS AVAILABLE BESIDES SELLING
MY POLICY?
Maryland law requires that the broker or life settlement company disclose
alternatives to the settlement contract including accelerated death benets, policy
loans or the surrender of the policy for its cash value. Before agreeing to sell your
policy, you should discuss all of the options with a nancial advisor to see which is
best for you.
WILL I BE ABLE TO PURCHASE ANOTHER LIFE INSURANCE POLICY IF I
SELL MY CURRENT POLICY OR ENTER A STOLI ARRANGEMENT?
If you are considering buying a new policy with the proceeds of the life settlement,
you will need to determine whether you will be able to get a new policy with
equivalent coverage and at what cost. Although you will not be the owner, your old
policy will still be in force and thus, your ability to get additional coverage may be
aected. Even if you can get a new policy, you may have to pay higher premiums
because of your age or changes in your health status. If your goal is to retain
coverage but lower the premiums you pay or otherwise obtain dierent features,
consider options such as reducing your existing amount of policy coverage or
making a “1035 Exchange.”
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A CONSUMER GUIDE TO LIFE INSURANCE
e Internal Revenue Service allows you to exchange an insurance policy that
you own for a new life insurance policy insuring the same person without paying
tax on the investment gains earned on your original contract – which could be a
substantial benet. Because this transaction is governed by Section 1035 of the
Internal Revenue Code, it is called a “1035 Exchange.” Other factors you should
consider when deciding whether to exchange your policy include potential loss of
death benets for your beneciaries. For more information, consult your nancial
or tax advisor.
WHAT IF I CHANGE MY MIND?
By law, you have the right to change your mind and rescind the transaction within
15 days of receiving the cash payment. If you change your mind within 15 days, all
money must be returned by all parties.
INFORMATION FOR
BENEFICIARIES
RETAINED ASSET ACCOUNTS AND
OTHER PAYMENT OPTIONS
While life insurance policies provide for a single payment of the death benet,
policies also may oer other payout options intended to t your needs and those of
your family, such as a Retained Asset Account (RAA).
An RAA is a temporary repository of funds. e account’s function is to give
you, the beneciary, the time needed to consider all of the nancial options
available. e payment of the total proceeds will be accomplished by delivery of a
“checkbook.” While the documents you receive might look like a checkbook, they
might be “drafts,” which dier from checks in some ways.
e use of an RAA provides you the exibility to make the right decision regarding
your long-term nancial needs while earning interest on the life insurance proceeds.
You can choose to write one check or draft to access the entire proceeds at any time.
However, you may be able to earn a higher rate of interest on the life insurance
proceeds if you select a dierent payout option.
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A CONSUMER GUIDE TO LIFE INSURANCE
QUESTIONS TO ASK AND ISSUES TO UNDERSTAND
If you are considering the option of an RAA or are provided one to settle a death
claim, here are some important issues to consider:
• What interest rate will be paid on the proceeds, how will the interest rate
be determined, and how will the interest amount be credited to
the account?
• Will the proceeds be held in a bank, which would make the proceeds
FDIC- insured up to the limit permitted by law?
• Will the proceeds be held by the insurer, which would make the proceeds
subject to coverage by a state guaranty fund should the insurer fail?
• Will the proceeds be held in a bank checking or an insurer draft account
and what banking services, if any, will be provided?
• What services will be provided at no charge, and what services will involve
a fee?
MARYLAND LAW
Maryland has taken action to require insurers to give you the information you need
to decide if an RAA is the right option for you. If an RAA is oered to a beneciary
as a settlement option, there must be at least one other option oered, and the
disclosure must describe all options available. In addition, the insurer is required
to give the beneciary important information about the features of the banking
services available through the RAA. At the time of the payout, the insurance
company must:
a) Recommend that the beneciary consult with a tax advisor, an investment
advisor or a nancial advisor about the tax consequences and investment
options.
b) Explain the features of the retained asset account, including:
1) interest rates and any other dividends that may be paid;
2) the method the insurer uses to determine the interest rates applied to
the RAA;
3) who is the custodian of the funds;
4) whether the funds are guaranteed by the Federal Deposit Insurance
Corporation (FDIC);
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5) any limitations on withdraws of any funds;
6) any fees that you are responsible for;
7) how often you will receive a statement;
8) a statement that the beneciary can get the entire amount due at
one time;
9) a statement that the insurer may invest the proceeds of the beneciary
and earn money from that investment; and
10) how to obtain additional information, including the telephone
number and website.
OTHER PAYOUT OPTIONS
One size does not t all; this is why various payout options are oered. Other
payout options may include one or more of the following:
Single Payment, also known as a “Lump Sum” Payout: rough this option, you
will receive the entire proceeds in one payment.
Installment Payout for Fixed Amount or Period: rough this option, you may
choose to receive either: a xed monthly, quarterly, or annual payment amount
selected by you until the proceeds are depleted; or a xed monthly, quarterly, or
annual payment amount determined by your insurer for a xed period of time that
you select.
Installment Payout for Lifetime: rough this option, you will receive xed
monthly, quarterly, or annual payments determined by your insurer for the
remainder of your life.
Interest-Only Payout: rough this option, proceeds are left with the insurance
company, and you will receive interest payments that the insurer will pay you
on a monthly, quarterly, or annual basis. If you choose this option, be sure you
understand whether the interest rate is xed or variable, and if there are any
guaranteed minimums or maximum limits. Proceeds are passed on to your
beneciaries upon your death.
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A CONSUMER GUIDE TO LIFE INSURANCE
TIPS REGARDING LIFE INSURANCE PAYOUTS
• If you are the beneciary of a life insurance policy, contact the insurance
company in a timely manner after the death of the insured. Be prepared to
provide a death certicate to initiate the claims process.
• Always obtain the necessary contact information for your insurance
company, such as a phone number and address, so you can receive
information and answers to your questions.
• Make sure you read and understand all information the insurance
company sends to you.
• Assess your nancial needs and the tax implications of whichever option
you choose.
• Take your time in determining the right payout option for you. You should
not be pressured to act quickly.
• If you need help, consult a trusted nancial or tax advisor.
IDENTIFYING MISSING OR OLD
LIFE INSURANCE POLICIES
A common question is: “How can I nd out if a deceased family member has any
life insurance if a policy cannot be located?”
Look through all of the deceased’s personal papers including the bank accounts,
bills for evidence of existing policies. Don’t forget to check safety deposit boxes or
their on-line accounts.
You should also contact any insurance professionals, nancial advisors and prior
employers, professional organizations, unions or other groups to see if they know of
any existing polices. You may need to know the deceased’s full name (and maiden
name, if applicable), Social Security number, and state (or possible states) where the
deceased may have purchased the policy.
If you are able to nd the name of an insurance company, then you can contact the
company to see if the deceased had a policy with them. e MIA can provide you
with the phone number and address of the company if you are unable to otherwise
nd them. Also, if you locate an old policy but the company that issued it is no
longer in business, you can nd out what insurance company is now responsible for
that policy by contacting us.
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Also the National Association of Insurance Commissioners (NAIC) can assist
consumers in locating life insurance policies and annuity contracts of a deceased
family member or close relationship. When a request is received, the NAIC will:
• Ask participating companies to search their records to determine whether
they have a life insurance policy or annuity contract in the name of
the deceased.
• Ask participating companies that have policy information to respond to
the requester if the requester is the designated beneciary or is authorized
to receive information.
• For information on how to complete the request form, please see the
Frequently Asked Questions at:
https://eapps.naic.org/common_web/life_insurance_policy_locator_faq.pdf.
SPECIAL
CONSIDERATIONS
FOR MILITARY
PERSONNEL
For military personnel and their families, handling personal matters such as
insurance coverage and other nancial obligations can be made more dicult
because of sudden deployment. Knowing who to trust and which questions to ask
can be challenging too.
e Maryland Insurance Administration has created a guide, Life Insurance for
Military Personnel, to assist you with these eorts. e Guide provides purchasing
tips (such as inquiring about any war exclusions found in many commercial
insurance policies), contact information, and frequently asked questions about
life insurance. e Guide also includes warning signs regarding deceptive and
fraudulent sales practices.
You can access this Guide on the agency website for more details.
MIA-LI-1 (5/20)
is consumer guide should be used for educational purposes only. It is
not intended to provide legal advice or opinions regarding coverage under a
specic policy or contract; nor should it be construed as an endorsement of any
product, service, person, or organization mentioned in this guide.
is publication has been produced by the Maryland Insurance Administration
(MIA) to provide consumers with general information about insurance-related
issues and/or state programs and services. is publication may contain
copyrighted material which was used with permission of the copyright
owner. Publication herein does not authorize any use or appropriation of such
copyrighted material without consent of the owner.
All publications issued by the MIA are available free of charge on the MIA’s
website or by request. e publication may be reproduced in its entirety
without further permission of the MIA provided the text and format are not
altered or amended in any way, and no fee is assessed for the publication or
duplication thereof. e MIA’s name and contact information must remain
clearly visible, and no other name, including that of the company or agent
reproducing the publication, may appear anywhere in the reproduction. Partial
reproductions are not permitted without the prior written consent of the MIA.
People with disabilities may request this document in an
alternative format. Requests should be submitted in writing
to the Chief, Communications and Public Engagement at the
address listed below.
200 St. Paul Place, Suite 2700
Baltimore, MD 21202
410-468-2000
800-492- 6116
800-735-2258 TTY
www.insurance.maryland.gov
www.facebook.com/MdInsuranceAdmin
www.twitter.com/MD_Insurance
www.instagram.com/marylandinsuranceadmin
INSURANCE ADMINISTRATION
