You’ve purchased life insurance - now what?
If you’ve purchased life insurance, congratulations on taking a responsible step towards securing the future for you and your family. Now that you have this valuable financial safety net in place, it's essential that you and your loved ones know how to make the most of it when needed.
Here are some important steps to take once you've purchased life insurance:
Let someone know
Unlike other types of insurance, life insurance isn’t something you directly benefit from. In the case of life cover the payout goes to your beneficiaries after you're gone, so it's crucial to inform at least one trusted person about your life insurance policy so they can initiate the claim process when the time comes. This person could be your partner, a close family member, your lawyer or better still, your insurance adviser.
Keep it in a safe place
It's essential to keep your life insurance policy documents in a secure and easily accessible place so that your loved ones don’t have to search through stacks of papers during an emotionally challenging time. It’s a good idea to store your life insurance details along with other important documents like your will. This will help your beneficiaries locate the necessary information when it's needed the most.
Make sure it’s in your will
Unless you've named a beneficiary or someone else owns your policy, the payout from your life insurance will become a part of your estate when you pass away. To make sure that your wishes are carried out, consider listing your life insurance policy as an asset in your will. This can help streamline the process and make it clear who should receive the payment. However, if you've already named a beneficiary, the payout will go directly to them.
Don’t set and forget
Once you’ve purchased life insurance, it can be easy to simply forget about it as you get on with your life. However, it's important to review your policy regularly, especially if you experience any big life changes, such as paying off your mortgage or welcoming a new child. You should always make sure that your cover is still appropriate for your current situation; you don't want to be underinsured and leave your loved ones financially vulnerable, nor do you want to overpay for cover you no longer need.
If you want help understanding your life insurance policy or you want to look at other options, feel free to give us a call on 0800 001 866. We’re experts when it comes to translating the jargon and making sure you have the best life insurance policy in place to look after your loved ones long after you’re gone.
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