With a term policy does the life insurance company notify the beneficiary of your death and their benefit if the beneficiary is unaware of the insurance?
As with all life policies, when the insurance company is
notified of the death of the insured, they will make every effort
to locate the beneficiaries based on what information has been
supplied to them by the owner/insured of the policy.
However, if they are unable to locate a beneficiary, they are
legally required to escheat the amount of the benefit in the
beneficiary's name to the State Treasurer's Office of the State
their Home Office is in. This amount isn't 'lost', the beneficiary
need only contact that Treasurer's office and request it.
As to contacting a beneficiary when a premium hasn't been paid?
Privacy regulations state that they can't contact anyone on the
policy unless the policyowner specifically asks that they do so.
The policy is a contract between the company and the policyowner,
until the insured dies the beneficiary has no right to any