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A Death in the Family: Handling the Policies

Some policies must be claimed, some cancelled, and some kept running. Knowing which is which.

9 min read · Updated September 2026 · By Miguel Contreras, based in Colombia

Insurance after a death divides into three categories: policies to claim on, policies to cancel, and policies that must be kept in force. Getting the third category wrong is the expensive mistake.

Before anything else: do not cancel

The instinct is to close accounts and stop payments. Resist it for property and auto coverage.

A house with no coverage is exposed from the moment the policy ends, and an estate that suffers an uninsured loss has a problem nobody can fix afterwards. Keep property and auto policies paid until ownership is settled, even if that means paying for coverage on a vehicle nobody is driving.

Policies to claim on

Life insurance

The beneficiary claims directly. Typically required: a certified death certificate, a claim form, and identification. Beneficiaries claim in their own right — the proceeds generally do not pass through the estate unless the estate is the beneficiary.

Look for policies in more than one place: individual policies, employer group life, coverage through a union or association, mortgage life or credit life attached to a loan, and accidental death benefits on a credit card. Several states operate a life policy locator service to help find policies nobody knew about.

Accidental death benefits

Where the death was accidental, additional benefits may exist under an auto policy, an employer plan, or a travel policy. These are frequently missed because nobody thinks to look.

Final expense and burial policies

Often small and often forgotten. Check paperwork and bank statements for premium payments to insurers nobody recognises.

Policies to keep in force

  • Homeowners, until the property transfers. Notify the insurer of the death and of whether anyone is living there — a vacant house triggers coverage restrictions within weeks.
  • Auto, while vehicles remain titled to the deceased. A vehicle sitting uninsured can also create a registration problem in some states.
  • Any policy where the estate has an interest, until that interest is resolved.

Policies to cancel

Health, disability, long-term care, and any personal coverage that ends with the person. Request refunds of unearned premium, which are usually due and not always volunteered.

Auto coverage on a vehicle can be cancelled once it is sold or transferred, not before.

Health coverage for survivors

If the deceased carried the family's health coverage, the surviving family generally loses it. That is a qualifying life event opening a special enrolment period, and the window is short.

Options are the surviving spouse's employer plan, a Marketplace plan, or continuation coverage under COBRA where available. Continuation is usually the most expensive.

This item is urgent in a way the others are not, and it is the one most often left until after the funeral.

Documents you will need repeatedly

Order more certified copies of the death certificate than seem necessary. Insurers, banks, and registries each want one, and most will not accept a photocopy.

Also useful: letters testamentary or the equivalent appointment document, policy numbers, and identification for whoever is acting.

A sequence

  1. Obtain certified death certificates — several.
  2. Notify property and auto insurers, and confirm what coverage continues and for how long.
  3. Address occupancy if a property is now empty.
  4. Handle survivors' health coverage inside the enrolment window.
  5. Locate and claim life policies. Search bank statements for premium payments.
  6. Cancel personal policies and request refunds.
  7. Rewrite property and auto policies once ownership is settled.

Be careful about who contacts you

Death records are public in many places, and unsolicited approaches after a death are common. Nobody legitimate needs payment up front to help you locate or claim a policy. Your state Department of Insurance can help at no cost, and several states run free policy locator services.

What we are not saying

We are not giving legal or estate advice. Who is entitled to what, and who may act, are questions for the attorney handling the estate.

What we are saying is that property and auto coverage should be kept in force rather than cancelled, that health coverage for survivors runs on a short window, and that policies nobody knew about are common enough that searching for them is worth the hour.

Where to verify this yourself

What can wait, and what cannot

Almost all of this can wait a fortnight. Three things should not, and separating them makes the rest manageable.

Do soonWhy
Tell the property insurer if a home is now emptyVacancy provisions restrict coverage after a stated period, commonly 30 or 60 days
Keep premiums paid on everythingA lapse is far harder to undo than to prevent, and some policies cannot be reinstated
Order enough certified death certificatesNearly every institution wants an original. Ordering more later is slower than ordering extra now

Everything else — claims, transfers, cancellations, searches — keeps. There is no advantage to doing it in the first week, and doing it badly because you were exhausted creates work later.

Finding policies nobody knew about

Unclaimed life insurance is common, because policies are frequently bought decades before they are needed and the paperwork does not survive several house moves.

Where to look

  • The NAIC Life Insurance Policy Locator — a free national service that searches participating insurers. It exists because of a regulatory investigation into exactly this problem
  • Bank statements for regular premium payments
  • Tax records, which sometimes show policy-related entries
  • Employer or former employer benefits departments
  • Union, professional association and alumni memberships, which frequently include small policies
  • Credit card and mortgage agreements, which sometimes carry attached life coverage
  • Address books and safe deposit boxes
  • Your state's unclaimed property office

The NAIC locator is free and it exists because state regulators found that insurers were using death records to stop annuity payments while not using the same records to find life insurance beneficiaries. Several states publish figures showing it has matched tens of thousands of people with policies. It costs nothing to submit a search.

Making a life insurance claim

  • First

    Contact the insurer and ask what they need

    Requirements differ. Getting the list first avoids sending the wrong things twice.

  • Gather

    The policy number, a certified death certificate, and the claim form

    Identification for each beneficiary is generally required too.

  • Ask

    What settlement options exist

    Lump sum, instalments, or a retained asset account. They have different tax and practical consequences, and the default is not always the best fit.

  • Note

    Any contestability period

    Policies issued within roughly the last two years may be subject to additional review. This is routine rather than adversarial, and it lengthens the timeline.

  • Keep

    A record of everything sent, with dates

    Multiple institutions, multiple policies, one folder.

The other policies, one by one

PolicyWhat to do
HomeownersNotify, report the occupancy status, ask about a vacancy permit, keep it paid
AutoVehicles still need coverage while they sit. Do not cancel before title transfers or the vehicle is sold
HealthNotify to stop billing; check whether dependants lose coverage and what window they have
AnnuitiesHave their own beneficiary designations and their own claim process
Flood or earthquakeSeparate policies, easy to overlook entirely
UmbrellaCheck what it required underneath before changing anything below it
Long-term careMay have unpaid benefits owed for care already received

The second row catches people. Cancelling the auto policy on a vehicle that is still parked outside leaves it uninsured against theft, weather and vandalism — and if anyone drives it, uninsured entirely.

Beneficiary designations override wills

Worth stating plainly because it surprises families regularly.

Life insurance, annuities and retirement accounts generally pass by beneficiary designation, not by the will. An outdated designation naming a former spouse, or naming someone who has since died, controls unless state law provides otherwise.

This is not something the family can fix afterwards. It is a reason for everyone reading this to check their own designations, which takes an afternoon and is the single most useful thing this article can prompt.

Be wary of pressure

Beneficiaries receiving a substantial payment sometimes attract approaches from people offering to manage or invest it.

Sensible precautions

  • There is no deadline requiring you to decide quickly what to do with the money
  • Verify any adviser's licence with your state's regulator before engaging them
  • Be cautious about anyone who contacted you rather than the other way round
  • Take time. Decisions made in the first weeks after a bereavement are rarely the best ones
  • Leaving funds in an ordinary account while you decide is a legitimate choice

What we are not saying

We are not giving legal or tax advice about an estate, and we cannot tell you what any policy owes or to whom. Those depend on the documents and on state law.

What we are saying is that very little of this is urgent, that the three items at the top genuinely are, that unclaimed policies are common enough that a free search is worth doing, and that beneficiary designations rather than wills usually control who receives what.

Finding policies nobody knew about

This is where families most often lose money they were entitled to. Policies are forgotten, paperwork is lost, and beneficiaries who never knew a policy existed do not file a claim.

The NAIC Life Insurance Policy Locator is a free national service that searches participating insurers for policies belonging to a deceased person. It exists because a regulatory investigation found insurers were using death records to stop annuity payments without using the same records to pay life insurance beneficiaries. Using it costs nothing.

Other places policies turn up

  • Bank statements showing recurring premium payments
  • Tax returns, which may show interest or dividends from a policy
  • Employer records — group life through a current or former employer
  • Union, professional association or alumni memberships
  • Mortgage or loan files, where credit life was sometimes attached
  • Address books and safe deposit boxes
  • Post arriving from insurers, particularly around a policy anniversary
  • Your state's unclaimed property office, where unmatched benefits are eventually reported

The order that works

  • First days

    Order multiple certified death certificates

    Each institution generally wants an original. Ten to fifteen is not excessive, and ordering more later is slower and more expensive than ordering enough now.

  • First week

    Notify the property and auto insurers

    Not to cancel — to tell them the named insured has died and to ask what coverage continues and for how long. Cancelling early is how properties and vehicles end up uninsured.

  • First week

    Locate the policies

    Using the list above, and the NAIC locator.

  • Weeks one to three

    File the life insurance claims

    Each named beneficiary generally files separately. The insurer provides the forms.

  • Ongoing

    Keep premiums paid on property and vehicles

    Until title transfers or the assets are sold. A lapse during probate is far more expensive than the premium.

  • When title transfers

    Rewrite the policies in the new owner's name

    Everyone who inherits jointly should be named.

What a life insurance claim requires

Typically

  • A certified death certificate
  • The insurer's claim form, completed by the beneficiary
  • Proof of the beneficiary's identity
  • The policy number, where known — insurers can usually search without it
  • For a claim by an estate, documentation of the executor's authority

Two things worth knowing about payment. Beneficiaries are frequently offered a retained asset account rather than a cheque — an account held by the insurer that you draw on. It is a legitimate option and it is not the only one; a lump sum payment is generally available if preferred. And where a death occurs within a contestability period, typically the first two years of a policy, the insurer may investigate the application before paying. That is routine rather than an accusation, though it takes longer.

The property and the vehicles

AssetThe riskWhat to do
The home, standing emptyVacancy provisions exclude several perils after a stated periodTell the insurer; ask about a vacancy permit endorsement
VehiclesCoverage may end with the named insuredConfirm what continues; insure them until sold or transferred
ContentsDistribution before documentationPhotograph and inventory before anything is removed
Flood or earthquake policiesSeparate policies, easily overlookedCheck for them specifically

Watch for the approaches that follow

Obituaries are public, and some approaches to bereaved families are aggressive or dishonest.

Reasonable caution

  • Verify any adjuster, agent or adviser through your state Department of Insurance licensee database
  • Be wary of anyone claiming a policy exists but requiring a payment to release it — legitimate claims never work that way
  • Do not sign anything transferring rights or authorising representation under time pressure
  • Be cautious of unsolicited approaches offering to buy a policy or an inheritance
  • Take time. Almost nothing in this process is genuinely urgent within days

If it feels like too much

It frequently is, and there is no requirement to do it alone or quickly. Most of these steps have no short deadline, and the ones that do — keeping property coverage in force, the group life conversion window — are few and identifiable.

Asking a relative or friend to make the calls is entirely reasonable, and insurers will speak to an authorised person. A single folder, a list of institutions, and someone willing to work through it steadily is the whole method.

What we are not saying

We are not giving legal advice about probate or estate administration, which depend on the will and on state law. An attorney licensed in that state is the person to ask.

What we are saying is that the free NAIC locator exists and finds policies families did not know about, that cancelling property and auto coverage early is a common and expensive mistake, that keeping premiums paid through probate is worth it, and that nearly none of this has to be done in the first week.

This is general education, not advice. Insurance law and claim rules vary by state and change over time. Nothing here is legal, financial, or insurance advice for your situation, and reading it does not create any professional relationship. For your specific case, consult a licensed professional in your state or contact your state Department of Insurance.