How to find lost insurance

Misplacing something important is a headache, but when you don’t know exactly what’s misplaced, it’s a much bigger headache. Tracking down a life insurance policy bought in your name after the original purchaser has passed away is no easy task.

You could find yourself in this position if your parents passed away leaving you with the knowledge that such a policy exists, but little more. You may not know which company issued it, its worth, or if it’s even still active. But the possibility that the policy could have significant cash value makes it worthwhile to track down.

Where to look

Insurance regulation in Canada is highly decentralized, so there’s no single database of policies and policyholders, notes Lawrence Ian Geller, president of L.I. Geller Insurance Agencies.

Instead, the first place to look is through any files your parents left behind – there could be original paperwork.

If that yields nothing, your only other option is to use something like MIB Group’s policy locator service, says Geller. This service might be able to find the name of the insurer using your name and date of birth. It’s not free, with a cost of $75, and MIB estimates your odds of success are about 30%. But, as a last chance effort to locate a plan potentially worth thousands, it could be worth the gamble.

Next steps

If you’ve managed to find the name of the insurer, then the final step is simply to contact them. But, there may be another roadblock first. With old insurance policies, it’s possible that the original company may have closed down – with the insurance policy now held by some other company.

Geller says CompuOffice’s LifeGuide software is the best way to find such a company. The program includes M&A data on more than 400 life insurers, reinsurers and fraternal benefit societies in Canada dating back to the early 1800s.

But you’ll need subscription or an advisor with one.

Ami Maishlish, president and CEO of CompuOffice Software Inc., says his firm does free traces for consumers and their lawyers. The firm would contact the insurer that now has carriage of the client’s policy. “If a contract is in force, they’re obligated to make proper disclosure.”

Ultimately, if the plan’s dividends weren’t set to cover premiums, you may have nothing to collect. But if dividends were covering premiums, you could be in for a substantial windfall.