Trace a Missing Annuity
An annuity is a customizable, tax-advantaged insurance contract issued by an insurance company that converts an investor’s premiums into a guaranteed income stream for life. Deferred annuities include the fixed annuity, variable annuity, fixed indexed annuity, and long term care annuity.
The initial investment grows tax-deferred during the accumulation phase, which generally runs 10-30 years prior to the Annuity Commencement Date. Starting on this day, funds are paid out annually until the owner’s death. Because it is the job of beneficiaries to notify the insurance company of an annuity owner’s death, a substantial number of insurance policy benefits go unclaimed. Family members often aren’t aware a policy exists, or don’t know how to track it down.
Heirs of deceased policyholders and annuity owners may be entitled to receive restitution arising from a recent government audit of twenty-one major life insurance companies that revealed insurers failed to pay $7.5 billion in benefits to beneficiaries even in cases where they knew, or should have known, the annuity holder or life insurance policy holder was deceased.
Because some underwriters continued collecting premiums after death by deducting payments from the cash value of policies, prompt action is advised. Also note the IRS charges a 10% penalty on withdrawals made before age 59½, so annuitants who die early may have never received a payment.
► If you have reason to believe a deceased family member had an annuity but have not yet payments, complete the form below to initiate a search.
