When you have a life insurance death benefit, and no one knows about it, your policy might not end up doing all the good it was intended for until your family has time to go through all your paperwork and discover that it exists. Talking to your beneficiaries about your policy is a great way to make sure that your heirs receive the legacy you intended to give them. If you aren’t sure how to get started, consider these points:
- What do you want to convey to them about your policy? You definitely want to let your family know that you have a policy, and it’s OK if you’re not comfortable telling them the benefit amount as long as their aware the policy exists. Before you decide to sit down with your beneficiary, think about what information you are comfortable sharing about your life insurance policy.
- Should you talk to everyone at once, or individually? You should have a primary beneficiary named on your policy as well as a secondary should the primary beneficiary pass away before you. Both definitely need to be made aware of the policy. You can decide whether it’s best to communicate this one-on-one or during a family meeting. You can also decide if other family members should be notified and how to best do that.
- Let them know where you’ve stored your policy. Insurers legally cannot discuss your policy details with anyone but you so your family cannot access policy information from the insurance company after you’re gone. Since all the details can be found in the policy itself, you can put your policy in a location that is secure, like a safe-deposit box or safe, and let your beneficiary know that this is where they can find it if something happens to you.
- Update your family on any policy changes. If at a later date you make changes to your policy such as the primary beneficiary or where you policy is located, inform your family of these changes. This will make it much easier for all parties involved to handle the policy and benefits after your death.
If you’re ready to start your estate planning but don’t know where to begin, give us a call 540-657-5633. We can work with you to create a life insurance policy that has all the coverage options and death benefit that you need. Contact us to get a Stafford VA life insurance quote now.