This question has frequently come up in conversation with clients. In the event that something should happen to you, it would be best if your life insurance policy was easily accessible. Amongst all of the emotional drain that families must endure with the passing of a loved one, they have to figure out what to do next. Stress is high, heads are clouded, and the circumstances couldn’t be tougher.
Imagine if you had to sift through archives of records and paperwork accumulated over the past 10 years. You don’t know what company the policy is with, what color the booklet is, or even have the confidence that you would recognize it if it were right in front of you. What if you couldn’t find it? Who would you call?
A client of mine reminded me the other day just how important it is to keep your life insurance policies together, and in a place your beneficiaries are aware that it is kept. In fact, you may want to create an “in case of emergency” drawer or safe so you can keep everything together. It would be a great idea to include a phone directory of names and contact information for your life insurance carrier/agent, relative names and phone numbers, contact information for financial advisors/money managers, bank account information, burial plot ownership certificates, and anything else you could think of that would be important.
Have the conversation with your family. Let them know where things are and what to do, especially if you have younger children. Life insurance will pay as long as it’s in force. That includes the terminal diseases which allow you the luxury to give your family members verbal instructions on what to do and who to contact when you pass on, but it also covers those unexpected incidents like fatal car accidents where you don’t have the same opportunity. It’s a tough conversation to have, but knowing that your family will be able to handle the situation and know what to do will give you peace of mind.