In 40 years of planning estates, I have picked up a few lessons. One of these involves life insurance claims. Paying for a life insurance policy doesn’t necessarily guarantee your heirs will receive the benefit – not if the policy gets lost in the shuffle of life. Remember, your heirs may have to specifically approach the insurance company with their claim in order to receive any benefits. In fact, New York’s Attorney General’s office is investigating nine leading life insurers to see whether they have done enough to identify beneficiaries of life insurance policies. Do your heirs know the particulars of your life insurance, or where to find the paperwork?
I suggest to all clients that they stick copies of their policies as well as a single copy of bank and stock statements (for account numbers) in the binder with their estate planning documents. Few people are so organized that they will make lists of their assets- it is a lot easier just to run a copy of a bank statement and stick it in the binder.
As to insurance policies? Don’t forget those freebie policies that you sometimes get with a credit card- accidental death if you charged the flight. No heir (and probably not you) will be aware such a policy exists. Just stick it into the binder and forget about it- hoping, of course, that it is never cashed in!
Learn more about getting your legal and financial affairs in order in the November 2010 issue of our monthly estate planning newsletter, at www.tierneywatsonhealy.com.”
Comments