The purpose of life insurance is to provide for your loved ones after you have passed on, but for that to happen, your loved ones need to know about the insurance.
It seems obvious, but some people do not communicate about their policies to their loved ones: what companies their insurance policies are with, what those policies cover and who to contact in case of an untimely death. And if your beneficiaries do not know a policy exists, they cannot obtain the money you intend them to have.
The problem is so significant some states have looked into measures to prevent life insurance from being forgotten. For example, some states may require life insurance companies to pay the beneficiaries of policies that are no longer active if they are dated after a certain year.
But not all states have such requirements, and life insurance companies, while they try to contact your beneficiaries, do not take extreme measures (such as hiring private investigators) to track down your beneficiaries if they cannot easily find them.
Imagine if your beneficiaries found themselves in this situation. Perhaps they moved to another state, or perhaps they changed phone numbers, and after your death, they could not be found. The money you intended them to have (money that could make a big difference in their lives, whatever the sum) could not get to them. Your efforts in buying life insurance would have proven fruitless.
So talk to your loved ones today. Let them know you have life insurance and that they are the beneficiaries and what to do in the event of your death. They should know the name of the insurance company, the amount of the policy and ideally even the policy number.
If you decide you need life insurance, talk to us. Call or email us and we can discuss your options.