Life insurance can make an important difference when your loved ones need funds to help cover expenses and bills that are left behind. For some, claiming a life insurance settlement can be difficult, stressful, or even time-consuming. While everyone’s experience is different, there are important steps that you can take to make the process easier for your loved ones.
1. Update your beneficiary designation.
It’s always important to review and update your life insurance periodically…and this includes your beneficiary and their contact information. Keeping this information up-to-date can ensure your life insurance benefit will go to the right person in a timely manner. It’s especially important to revisit your policy following a significant life event such as birth, marriage, divorce or a death in the family. If you do not list a beneficiary on your policy, then the benefit will go to your estate or trust. Typically, these types of claims require more paperwork that can take longer to process.
2. Inform your beneficiary.
Once you choose a beneficiary, you should always notify them. Maintaining an open line of communication with your loved ones can lessen the potential for confusion when it comes time to file a life insurance claim.
3. Understand your policy.
Make sure you are clear on what type of policy you have, and the exclusions that exist. Not only will this information be useful for you when planning for the future, but it will help you educate your beneficiary on the type of policy you have and how to claim the benefit.
4. Stay organized.
Keep a copy of your policy, and any personal information or important documents in a secure place that is easily accessible for you and your family members. This can be helpful when completing the claim form, or providing the insurance company with the information they need.
Planning for the Future
Filing a life insurance claim isn’t something that many people want to do — but by taking these simple steps, you can make sure your loved ones are better prepared. Additionally, it’s important to choose a life insurance provider that will honor its commitment to you. Select a company with strong financial strength ratings that you can depend on. You’ll have the added peace of mind in knowing that your loved ones are being taken care of during a difficult time.
This article is provided by New York Life Insurance Company for informational purposes only. This article is not intended to provide tax, legal, financial or accounting advice. Please consult your own professional for advice specific to your circumstances.