Make Sure Your Loved Ones Get Their Money
By Jack Dolan
We all love our secrets.
But if you haven’t revealed – or have just plain forgotten – the location of your life insurance policy, think again. And find it. And tell your beneficiaries about it so they can get the money you planned for them to receive upon your death when you bought the policy.
Millions of dollars in death benefits goes unclaimed every year, which prompted the National Association of Insurance Commissioners (NAIC) to set up a policy locator service. The NAIC recently reported that it has matched consumers with more than $1 billion in life insurance and annuity benefits.
The program is terrific, but it would be so much easier on your beneficiaries if they didn’t have to hunt for the benefits they’re entitled to receive. Why not simply instruct them on steps to take upon your passing?
Check this out: Missing Policy Tips from ACLI. It makes clear that even if a missing policy is not recovered, it does not necessarily mean beneficiaries will lose out on money they’re entitled to receive.
A key recommendation is to check paper and electronic records to look for life insurance policies and the names of insurance agents.
The tips can be especially helpful for people who think they were a named beneficiary of a policy.
But you’ll never need the tips or the NAIC’s policy locator service if you inform beneficiaries about the policies, and your overall estate plan. Keep things simple for yourself, and your family.