What happens to life insurance of someone who disappears? Can loved ones receive the life insurance amount or not? This is not a usual occurrence, and it is normal to feel overwhelmed by the disappearance of a loved one. Coping with this stressful situation is difficult and handling the life insurance of a missing person can also add to the stress. His disappearance can cause many problems in life insurance because there is no way to know if the person is really deceased or is likely to appear someday. The disappearance of a person is a very difficult situation, yet the family may wonder whether the heirs can receive the insurance amount to help them cope with the loss. It is possible that the family will never see the missing loved one again and would request to collect the life insurance benefits of the missing person. A life insurance policyholder may not be aware that in a disappearance, normal conditions change dramatically and will not be appreciated by everyone.