Make Sure Information Such as Your Date of Birth is Correct.
The correct date of birth is crucial because if it is wrong at the time of death or claim filing it could decrease the amount. The date of birth is a critical piece of information required when getting insurance, especially life insurance, because it helps determines the premium rate.
“Burial Policies” Are Really Life Insurance Policies.
There is really no “burial policy”. Insurance companies promote some Life Insurance policies as “burial policies” but insurance payouts are not limited to just burial.
Shred or Throw Away Canceled Policies or Old Documents that Are No Longer Needed.
Shred, throw away or even write “Canceled” or “Closed” on old insurance policies or old documents that are no longer needed. It gets rid of clutter and makes it easier to find current information as needed.
Life Insurance Policies Fund Faster Than Estate Accounts.
A benefit of having Life Insurance is that benefits payout faster after someone dies than an Estate. In normal situations life insurance pay faster, however if for some reason the life insurance is constable or other extenuating circumstances then that may not be the case. However, in most situations life insurances policies can pay a week or two after someone dies. Even if there is a planned estate it can take much longer for it to be settled and benefits distributed amongst beneficiaries.
Beneficiaries Are Needed for Almost All Financial Type of Accounts. (401K, Pension Plans, Investment Accounts)
Make sure that you have added bene’s to all accounts that need beneficiaries on them.
**Note-If you have more than one type of insurance with a company each policy should have a named beneficiary on it. Even if it’s the same type of policy, even if it will be the same beneficiary make sure beneficiary information is on each one.
Update Your Beneficiary Information When Your Beneficiaries Have Died As Soon As Possible.
Follow up with your insurance and/or financial institution to make sure that their beneficiary information matches yours.
Keep Your Own Copies. It’s Important.
Not just insurance policies but any important business documents-make sure you keep a copy or two. That can be a physical copy or even an electronic copy. It’s just good to have copies for many reasons- if you have questions you can go to the actual document and review it yourself. Also in case the business changes names or you have the document for many years the company may not have records of your original transaction. All companies are not organized, therefore it’s good for you to keep your own records.
**It’s a good idea to keep copies of beneficiary information. If you send something to the insurance company, make sure you keep a copy for yourself. If you change beneficiary information keep a copy and make sure it’s dated. If possible, it’s good for the current beneficiary to have information in case something happens.**
If You Are Now Divorced and Your Now Ex-Spouse is Your Beneficiary on Insurance Policies and/or Investment Accounts, Update that Beneficiary Information.
If you are now divorced and you still want that person to continue on as your beneficiary, STILL update your beneficiary information with the companies.
**On life insurance policies especially, sometimes insurance companies will request Divorce Decree’s when the beneficiary is an ex-spouse. If the beneficiary information is updated and it’s the name of an ex-spouse after the divorce, it’s not usually an issue. **
**The reason some insurance companies may request a Divorce Decree is to make sure that the Divorce Decree didn’t void any entitlements to life insurance benefits**
In Today’s World People Use Crowdfunding to Raise Money for Many Different Reasons Including Deaths.
Crowdfunding (Go Fund Me) is an excellent option to raise money in the wake of an unforeseen and unexpected tragedy. However, crowdfunding is unpredictable in the amount that is collected. Sometimes a good amount of money is collected, in other instances not a large amount is collected. It’s best to plan in advance to have insurance and/or financial funds available in case of emergencies.