Only 1/3 of Michigan Residents Have Life Insurance, But State Can Find Lost Policies

By: 
Contributor
Research has shown that most Americans think it's essential to have life insurance. In fact, 86% of those surveyed agreed with the sentiment that most people would require it. But a recent study conducted by AAA found that, even if they think it's necessary, one-third of Michigan residents don't have any life insurance coverage to speak of.
 
For those in the 400-participant study who didn't have life insurance, cost was frequently cited as the biggest obstacle. According to the report, most people overestimate the cost of this coverage. Around 33% of residents were under the impression that policy premiums would cost an arm and a leg -- anywhere from $500 to $3,000 and up. But AAA says this simply isn't true, noting that a 35-year-old non-smoking woman in excellent health can obtain a $100,000 policy and pay as little as $8 a month.
 
Others in the study felt they didn't need or couldn't get life insurance coverage because they were single with no dependents, a stay-at-home parent, or a senior citizen.
 
Michael Fletcher, Assistant Vice President of Life Insurance Sales at AAA, said of the findings, "These are just a few of the common misconceptions some have about life insurance ... Many people either don't have a policy or not enough coverage, and all it would take is one accident or terminal illness to leave your family in financial peril."
 
But even when people do invest in life insurance policies, their families may not always find them easily. Fortunately, the state of Michigan will help residents who are looking for lost policies and annuities.
 
Back in August of 2016, the Department of Insurance and Financial Services officially launched the Life Insurance and Annuity Search Service. In the program's first six months in operation, the state received 863 search requests -- and according to DIFS, they've already had great results.
 
To date, more than 376 companies are participating in the program, and 431 search matches have been reported. As a result of the program so far, $169,926 in claims have been paid out.
 
Michigan families who want to conduct a search for annuities and lost life insurance policies can fill out a form on the DIFS website. The Michigan Department of Treasury also keeps a database for unclaimed assets not related to these two areas.
 
These life insurance policies can help pay for medical bills, funeral expenses, lost wages, and more. Those who don't have coverage may want to consider getting it to provide for their loved ones -- and if you already have a policy, be sure to tell your family about it.

For full story, pick up a copy of the MONTH XX issue of The Allegan County News/The Union Enterprise/The Commercial Record or subscribe to the e-edition.

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