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Missing beneficiary indemnity insurance: what it costs, who pays for it, and when a trace is the cheaper answer
Missing beneficiary indemnity insurance lets an executor distribute an estate when one beneficiary cannot be found, by insuring the estate against that person turning up later and claiming. It is usually a single premium paid once, and for most estates it costs a small fraction of the share it protects. It is also not a substitute for looking: insurers expect proper searching before they will quote, and a trace that finds the person makes the policy unnecessary. This guide sets out what the cover usually costs, what drives the price, and how it compares with the other options. It is general information for England and Wales, not legal or insurance advice; a broker or the insurer will quote for the actual estate.
What it usually costs
The cover is bought with a single, one-off premium. Firms that arrange it publish a typical range of about 0.5 to 1 per cent of the net estate being distributed, and describe the cost for a small estate as a few hundred pounds. Those are the sellers' own figures, so treat them as a guide and get a quote. As a worked example, on a net estate of £300,000 that range is £1,500 to £3,000, paid once.
| Option | What it costs | What you get |
|---|---|---|
| A UK trace | £150, charged only if the person is found | A current registered UK address, dated and rated, so you can pay the beneficiary |
| Missing beneficiary indemnity insurance | A single premium, commonly quoted at about 0.5 to 1 per cent of the net estate | Cover if the missing person claims later; the estate can be distributed now |
| A Benjamin order | A High Court application and the costs that go with it | Permission to distribute as if the person had died or has no claim |
| Retaining the share | Nothing extra, but the estate stays open | The missing share is held back and the rest is paid out |
What moves the premium
- The size of the share at risk, and the size of the estate it sits in.
- How long the person has been missing and the last confirmed sign of them. Someone last heard of forty years ago is a different risk from someone who stopped answering letters last year.
- The relationship and whether the person was known to the deceased, is named in the will, or is a possible relative under the intestacy rules.
- What searching has already been done and how well it is documented. A dated trace report, section 27 notices and a note of family enquiries all help.
- The period and type of cover, including whether the policy also covers unknown beneficiaries or unknown creditors.
Who pays the premium
The premium is generally paid from the estate, on the view that it is an expense of administration that lets the estate be distributed. Views differ on whether it should come out of the whole estate or be charged against the missing person's share, and the will may say something about it. Agree the approach with the other beneficiaries, record it, and take advice if the sums are large.
Why insurers want a search first
An insurer is pricing the chance that the person turns up. A beneficiary who simply has not been looked for is a poor risk and may be refused or priced high. Insurers commonly ask what enquiries were made, whether section 27 notices were placed, and whether a professional trace was carried out. A trace that finds the person ends the question for £150. A trace that does not find them, with a dated report saying so, is the evidence the insurer wants to see, and it costs nothing, because a no-find is not charged.
Missing will insurance is something else
Missing will indemnity insurance covers a different risk: that the deceased left a later will that has not been found, and which would have left the estate differently. It is used when the family believes a will exists, or a will is lost, and the estate is administered on an earlier will or the intestacy rules. It does not cover a known beneficiary who cannot be located. Some policies also cover claims from creditors where section 27 notices were not placed or the notice period was cut short; ask the broker exactly what each policy covers.
Section 27 notices and the policy
A section 27 notice under the Trustee Act 1925 is an advertisement in The Gazette and a local newspaper giving unknown claimants at least two months to come forward. It protects the personal representative against claimants they had no notice of. It does not protect against a beneficiary you know exists, which is why the insurance and the Benjamin order exist. Placing the notices anyway is cheap and is often part of what the insurer expects. Missing beneficiary insurance or a trace explains how the pieces fit.
Try the trace first
Most missing beneficiaries are not hiding: they moved, married, or lost touch with the family. A Trace Bureau trace needs the full legal name plus a date of birth or a previous address. We cross-reference more than 150 sources, registers and records, a private investigator verifies the result, and you receive a dated PDF report with the current registered UK address and a confidence rating. Standard £150 within 3 to 5 working days, Priority £200 within 2 to 3 working days, and £120 per trace for probate firms on a firm account. Nothing is paid at instruction, and nothing is charged if the person is not found. If the beneficiary may be abroad, see locating an heir or beneficiary abroad.
Instruct a trace before you ask for a quote.
Questions
How much does missing beneficiary insurance cost?
It is a one-off premium. Firms that arrange it publish a typical range of about 0.5 to 1 per cent of the net estate being distributed, and a few hundred pounds for a small estate. The actual price depends on the share at risk, how long the person has been missing and what searching has been done.
Who pays for missing beneficiary indemnity insurance?
Usually the estate, as an expense of administration. Whether it comes from the whole estate or the missing person's share is a matter for the will, the beneficiaries' agreement and advice.
Do I need a trace before buying missing beneficiary insurance?
Insurers expect proper searching first and commonly ask whether a professional trace was done. A trace that finds the person makes the policy unnecessary, and a trace that does not is evidence for the insurer and is not charged.
Is missing will insurance the same as missing beneficiary insurance?
No. Missing will insurance covers the risk that a later will exists and turns up. Missing beneficiary insurance covers a known beneficiary who cannot be found.
Is insurance cheaper than a Benjamin order?
For most estates, yes. A Benjamin order needs a High Court application and evidence of the search, so it tends to suit large shares or cases an insurer will not cover.
Related guides
Missing beneficiary indemnity insurance: what it covers, when you need it, and why a trace comes first
Missing beneficiary indemnity insurance explained for executors and administrators: what the policy covers, why insurers expect a trace first, what section 27 notices and a Benjamin order do, and the fixed-fee trace that usually settles it.
ReadFinding missing beneficiaries: a guide for executors
Executors must find every beneficiary first. What a section 27 notice does not cover, the options if someone stays missing, and how a £150 trace helps.
ReadHow to locate an heir or beneficiary abroad: a guide for UK executors
For executors and administrators of a UK estate with a beneficiary or heir believed to be overseas: how to confirm they really left, where to look abroad, section 27 notices, Benjamin orders, insurance, and where a UK trace fits.
ReadHeir hunters or a fixed-fee trace: which do you need?
Heir hunters take a share of the inheritance; a trace charges a fee to find a person you can name. How each works, the unclaimed estates list, and which one fits.
ReadTrace Bureau is a UK address tracing service run by a private investigator through a UK-registered limited company, and every address it reports is verified by a private investigator before release. This guide is general information, not legal advice. Prices correct at 31 Oct 2026.