Talk. Give. Store. Write.
Congratulations, you bought life insurance or mortgage protection. Purchasing either life insurance or mortgage protection life insurance (mortgage protection) is an important financial safety net for you and your family. You think you’re done, right? Actually there are several more steps you should take. We have compiled the top 4 things you must do after buying life insurance life insurance or mortgage protection.
Although it’s tempting to just file-and-forget it, there are a few important things you should do right away after buying insurance.This way, in the event of a tragedy, the claims process will go smoothly. Your family will be able to easily and quickly receive the money you want them to have.
Here are the top 4 things you must do after buying insurance:
1. Talk about it
It’s important to tell your family about the type of life insurance or mortgage protection coverage you have. Use discretion here though, especially if you think a particular person or persons should not know. Life insurance or mortgage protection is a very private and personal thing, so use your judgement when deciding who to tell.
Just make sure, at a minimum, to tell your beneficiary (the person who will be receiving your insurance money).
By being open and honest and very clear about who is receiving the money (you can list more than one person), you will make sure that your family has an easy time in the claims process (receiving your insurance money).
Your loved ones can’t be financially protected if they don’t know that the financial protection is there. This way, if something unexpected happens to you, your family is aware of your coverage and how they will be protected.
2. Leave a paper trail
Make sure to give your beneficiary a “summary statement” or “policy certificate” (these are the same). This paperwork will be all they need to collect your insurance money. By providing them with a “summary statement” or “policy certificate,” your beneficiary will have the information they need but not all of your personal details that are on your original application. Ask your agent or contact your insurance company directly for this document.
You can also give your beneficiary a copy of your actual policy, but since your personal information is on your policy, such as your social security number and your medical information, you may choose to provide the documents listed above instead.
3. Keep your documents safe
Keeping your insurance documents safe is vital. Once you receive your final insurance policy papers, make copies. Your original may become lost, stolen or damaged. Put the original and the copies in two different places.
Another great way to keep your documents safe is to keep digital copies. This means making a copy of your entire policy to put on your computer. You may also want to email it to yourself and put that email message in a folder in your email account. That way, all you have to do is look through your email to find it! There are also many cloud-based applications (places where you can store your policy online) that are available and offer access from a variety of digital locations (like your cell phone or even another computer). These online storage spaces, like Dropbox or Google Drive, are very private and secure.
4. Write instructions to your family
This is like a love letter to your family and loved ones. In the event of your death, this is a written letter instructing your loved-ones on what they need to do. Spell out the steps that they need to take clearly. A detailed guide for your family will help them to navigate a difficult and emotional time. In this letter remind them of where your important paperwork is stored and what they should do with it. Include as many details that you think they will need. If you need help with writing the instructions, ask your insurance agent to help you. Your agent knows all the steps your family will need to take to make sure your family gets the financial security you want for them.
Now you are good to go.
Buying life insurance or mortgage protection is just the beginning of your journey. To make sure your family is able to collect your insurance money, make sure to follow the steps above and make it as easy for them as possible.
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Asurea offers Life Insurance, Mortgage Protection Life Insurance, Medicare Supplement Insurance, Final Expense Insurance, Disability Insurance, Long-term Care Insurance, Retirement Planning products and more. For additional information, click on the ‘Get A Quote’ button below. Want to have articles just like this delivered to your inbox? Just enter your email address in the box below and click ‘Subscribe.’
This information is provided for general consumer educational purposes only and is not intended to provide legal, tax or investment advice. Dollar amounts are for illustrative purposes, not actual.
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