Tuesday, May 16, 2017

Does Your Beneficiary Know Where To Find Your Life Insurance Policy?

So you've purchased a life insurance policy because you are very responsible and want to make sure that your loved ones have enough money in case you die too soon.  That's awesome, but you have one more job to do and that job is to make sure your beneficiary knows where to find the policy.

Many times, we throw the policy in a cabinet or a safe box and forget about it.  Big mistake.  Here are some basic suggestions to help you make sure your policy does what it is intended for.

  • Let your beneficiary know you named them as such.  I can't tell you how many times I've heard someone say, "I don't want to tell them because they might kill me."  I hope they are kidding, but if not, why would you name them beneficiary in the first place? 
  • Let the beneficiary know they will know where to find your policy, as well as other documents they will need.  This can include your social security card and death certificate. 
  • Don't put your policy in a safe deposit box at a bank.  This may sound like a great idea but many times the only one with access to the safe deposit box is the deceased and the bank won't open it without a court order. 
  • If you are pre-planning your funeral you can give your life insurance information to the funeral home and they can access your policy at your death.
  • Don't name minors as your beneficiary.  Life insurance carriers won't pay until the child is of legal age (usually 18 years old) and that can result in the much needed funds not being dispersed for the intended uses.
Also remember that your beneficiary will have a more difficult time if you buy your policy online without an agent.  Will they know which website you bought from or which 800 number to call?  Make the job of your beneficiary hassle free!

We can help you with your life insurance planning needs at Surf Financial Brokers