Have you had an annual life insurance check up? It only takes a few minutes and could save your loved one a lot of pain down the road.
First, make sure you have enough life coverage. Many people think they can get away with a small policy through work, but it's probably not enough to keep your family in their home and retain their lifestyle. The easy way to do this is with our calculator. Plug in some numbers and get a total value. Make sure you have enough coverage to pay off debt, cover education costs for your kids, replace income and costs associated with death, such as an extended hospital stay. Don't forget to include final expenses, like burial or cremation fees, funeral expenses etc.
Second, make sure your beneficiaries are who you want. An irresponsible adult child or a deceased loved one may not be as suitable as you thought originally. Have your agent get you the correct forms for beneficiary changes. Keeping your beneficiaries up to date will save your loved ones a lot of time and expense.
Which leads us to the last part of the check up. Let your family know who to contact if they need help at your death. Life insurance agents come and go. The trusted agent you purchased your plan from may or may not still be in the business. If not, contact the company and request a new agent of record to help you. Leave this information available for your loved ones so they don't have to waste time and money to file your claim. And be sure to keep documents like life insurance policies where your family can find it, like a safe or lockbox.
If you need help or have questions, please let us know.
Chris Castanes is the president of Surf Financial Brokers, as well as a professional speaker helping sales people be more productive and efficient.