You've bought life insurance - what now?

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.

So here are a few things you should consider doing after you take out your cover.

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. 

Make sure to tell your spouse, or beneficiaries, or even a trusted advisor like a lawyer that you have taken out your policy. That way if the worst should happen, they’ll know it’s there. 

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. 

The claims process will be a lot smoother if they have all the important information (especially your insurance company and policy number) at hand. 

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.

If you have selected a nominated beneficiary and/or somebody else owns your policy, then this would override what is detailed 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. 

If you have questions about changing or updating your policy, a financial adviser will be able to help. If you don’t have an adviser, we can help you find one.