Principal Mutual Life - Missing Policyholder Search
Principal Mutual Life Lost Policies and Unclaimed Demutualization Compensation
On October 26, 2001, Principal Mutual Life converted from a mutual insurance company to a stock company, distributing to 925,000 eligible policyholders 260 million shares of stock in exchange for their membership interest.
Eligible policyholders are those with Principal Life policies or contracts in force on March 31, 2000, one year prior to the adoption of the Plan of Conversion by the Board of Directors, who owned an eligible policy or contract continuously from that date until October 26, 2001.
Demutualization is the process of converting a mutual life insurance company, owned by its policyholders, to a publicly traded stock company owned by shareholders, pursuant to a plan of conversion approved by government regulators.
The amount paid to each policyholder is based on a number of factors, including length of time the policy has been in force, face value of the policy, and total premiums paid. For many policyholders, the windfall arising from demutualization can be substantial, but millions of missing policyholders and heirs aren't aware they are entitled to receive compensation.
All eligible policyholders were allocated at least 100 shares of Principal Financial Group, Inc. common stock, or the equivalent in cash or policy credits, as well as a variable component based on several factors, including policy value. The cash credit for lost policyholders is $18.50 per share entitlement. One year from the date of the Initial Public Offering the stock had appreciated 53%. The current value of a Principal share is approximately $41.
Between one-quarter and one-half of all life insurance policies go unclaimed, because it is generally up to family members to notify the insurance company when a policyholder dies, and virtually no effort is made to find lost beneficiaries.
In addition,hundreds of thousands of missing policyholders aren't aware they are entitled to receive this demutualization compensation. Contact efforts were unsuccessful, due to name changes after marriage or divorce, unreported changes of address, expired postal forwarding orders and non-current beneficiary information.
By law, unclaimed policy benefits, including demutualization compensation, are remitted to the custody of a government trust account until claimants come forward. Last year government custodians collected $22.8 billion, of which less than $1 billion was claimed.
It is highly recommended that current and former policyholders and heirs - the majority of whom are unaware they're entitled to unclaimed policy benefits, stock & cash - initiate an Unclaimed Life Insurance Policy Search
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