Bought a New Life Insurance Policy?

 

Bought a New Life Insurance Policy? Make Sure Your Beneficiaries Have This Information

The start of the new year is a good time to sit down with your budget, banking information, and all aspects of your financial life. If you don't already have "Review Life Insurance Coverage" on your list, it's worth adding. Finally, life insurance is essential if there are people who depend on your income or services (such as childcare if you are a stay-at-home mom).

If your current life insurance plan isn't enough (for example, you recently became a parent, are about to become a parent, or are starting a new business and have a business partner who depends on you), review it. and sign the option. for something new. Part of getting a life insurance policy is naming a beneficiary (or beneficiary). The beneficiary is the beneficiary of your policy's death benefit. It is important to note that a will does not override the designation of a life insurance beneficiary. Therefore, it is important to set up your insurance to benefit the right people. The insurance company may not know you have died, so it is up to the beneficiary to notify the company. Please read the important information you need before making that call.

Death Certificate

First and foremost, your family needs a death certificate so they can prove to your insurance company that you are gone. Of course, this isn't something you can offer them directly, so talk to them beforehand or leave written instructions (or ideally both) so they know what to do. is recommended. The easiest way to obtain a death certificate is to have a funeral director supervise the funeral. Otherwise, dependents must submit an application to the county's Vital Statistics Office.

Copy Policy

Your loved one will need to know which insurance company holds your policy and the details of the policy itself, so you should leave a copy. Also, if you put it in a less conspicuous place, let the beneficiary know where to look. Consider also leaving credentials for managing policies online.

Policy information will tell you exactly who is named, what beneficiaries are entitled to, and details of how the policy is paid. This is often, but not always, in the form of a lump sum payment. Some insurance companies offer the option of monthly installments or even a savings account that accrues interest and allows the beneficiary to withdraw the money. Payments from life insurance are not taxed per se, but interest earned from them is taxable. Discover:

Save on life insurance with one of these companies

Beneficiaries must submit an insurance claim form (available from insurance companies) to receive payment. Leaving as much information as possible will reduce stress during an already difficult time. The purpose of life insurance is to provide for those who will depend on you after you die. So don't make it any harder than necessary.

Other Considerations

If you find it difficult and expensive to get life insurance, make sure to renew it as needed. If you have a divorce, childbirth, or other change in circumstances, check your coverage. Also, if anything changes (for example, you cancel your contract with the insurance company and buy new coverage), make sure that your beneficiary is also aware of the change. Life insurance is designed to protect you and give you peace of mind.

Recommendations for the best life insurance companies

Life insurance is essential if people depend on you. We've combed through our options to create a list of best-in-class life insurance coverage. This guide will help you find the best life insurance company and the right type of insurance for your needs. Read our free review today.

Share :