By James Thomson
Claims Relations Manager
You’ve crossed the T’s, dotted the I’s and now you have a new life insurance policy in place. But what do you do with it next?
While it’s easy to store it away somewhere and forget about it, the purpose of a life insurance policy is to look after your spouse or family financially if you pass away – and it’s only useful if they know about it and can find it.
Tell someone about it
If your family are unaware that you have life cover, or don’t know who the policy is with, then when the time comes they won’t know that there is money available that could help to keep the family finances on track.
Keep it in a safe (but not secret) place
While someone may know you have a life insurance policy, they might not remember the details when they’re emotional and distressed.
It will make things harder if your family can’t figure out which drawer or cupboard you’ve put your important documents in, so keep the details of your life insurance policy with any other important documentation, like your Will and investments, in a secure location.
Add it to your will
Unless you have named a nominated beneficiary or somebody else owns your policy, the proceeds of any life insurance policy you set up will form a part of your estate. If this is the case then it’s worth listing the policy in the assets named in your Will.
Don’t forget about it
Once you have put your life insurance policy in a safe place, make sure you revisit it every so often. As life changes, your policy may need to change too. Whether your family has expanded, you’ve bought a house, or gotten married, not keeping your policy updated could be costing you more than you realise.