- Published: 26 August 2016
SPRINGFIELD – Unclaimed life insurance benefits may soon be awarded to the families and relatives of the deceased parties under a new measure co-sponsored by State Senator John Mulroe (D-Chicago).
Life insurance companies have come under fire with accusations that they have not been diligent enough in awarding benefits to the families and relatives of deceased policyholders.
“These awards and annuities don’t bring back individuals’ loved ones,” Mulroe said, “but they can most certainly aid in covering unexpected end-of-life costs. These families at least deserve that.”
A national survey of life insurance companies has shown that $4.4 billion had not gone to beneficiaries. Because of individuals not understanding how to claim awards or simply not knowing the policies exist, life insurance companies have been able to hold onto the money until the policyholder reaches a limiting age, usually 100 years old.
The measure was signed by the governor today.