Life Insurance - help your loved ones by planning ahead

Planning Ahead

So now you've chosen a life insurance policy. You feel secure that your loved ones would be financially secure if you passed away. But there's more to it than that. You need to plan ahead to make sure they can benefit from the policy as easily as possible.


Your loved ones need to know about your plans. They should know who you chose as your beneficiary and they should understand what your intentions were when you purchased the life insurance policy. That way, you can make sure everything is clear and you can resolve any issues way ahead of time.

Be organized

One of the most important parts of a "plan ahead" strategy is to create and maintain an accurate filing system for all your important documents. Go through everything and explain to your family or a trusted friend where to find each item. You should include all information that your loved ones would need to take care of your finances and your estate, for example:

Life insurance policies with agents' names and how they can be contacted
Any disability policies
Auto and home insurance policies
Any special liability policies
Employee benefits information
A copy of any wills or trusts
A list of all active credit cards
A list of all active bank accounts
A list of all financial assets and their location (such as rental property, etc.) as well as the name and contact information for any financial advisors.

Create a short list

In emotional times, it may be difficult for your family members to remember all that you have planned. Make a short list of your documents and where to find them as well as a quick summary of any items you feel may not be clear. This way, a grieving family member could easily enlist the help of a friend if needed.