How to make sure your life insurance is paid out.
If you have a life insurance policy, you have already taken the first positive step to protecting your loved ones’ financial futures. While you may think all you have to do is purchase the policy and then forget about it, it is a good idea to manage it well. This helps to ensure that life insurance is paid out to your loved ones – so that you get the most for your money and your family stays protected.
Here are a few points on how to manage life insurance and how to make sure it is paid out.
Update It Regularly
Did you take out your life insurance policy years ago? Did you take out before you got promoted in your job? Make sure your insurance updates as you move on with life. Big life events and financial decisions should be discussed with your insurance agent so that they can update coverage as needed. If you didn’t update it before you got a raise, you could be short-changing your family.
Tell Your Beneficiaries
Inform your beneficiaries about the company that issued your policy, where to find the paper copy, and any specifics you want them to know about the death benefit. Consider secure online storage for digital copies of your financial records and let your beneficiaries know your password. Be sure to update your policy if your beneficiaries change names or move addresses.
No one likes to think about their own passing, but life insurance requires a bit of morbid thought to protect your family. Life can take an unexpected turn, so it is wise to be prepared – for your family’s sake. Whether stepchildren are now in the picture or you want to leave something for your grandchildren, consider the need to change the wording on your policy to cover different scenarios and provide for your future children or grandchildren.
Typically, life insurance policies pay out in a lump sum, which is then divided up if there are multiple beneficiaries. However, as the policy owner, you can change how you want your money to be distributed.
To learn more about how best to protect your family’s future, contact the team at Bell Black Insurance. We can help you tend to your life insurance needs so that you get the best value for your money. We serve Idaho Falls, Island Park, Driggs, Victor, Swan Valley, Ashton, and the neighboring communities in Idaho, as well as Jackson and Star Valley in Wyoming.