How to Keep Track of Your Life Insurance Policy
Your life insurance policy is a very important document, and it should be treated with the respect it deserves. Simply filing the original policy in the bottom of a desk drawer or a box under the bed is not enough. It is important to set up a special place for those important documents, including all your insurance policies, deeds to the family home, wills and the like. Creating a central repository of vital documents does more than make your life simpler. It also provides your surviving family members with a single place to go in the event of your untimely death. A shocking number of people fail to take these simple steps, and that can leave their family members out in the cold when the worst happens.
In fact some family members only find out years later that their loved one had a life insurance policy at all. It can take years of research and thousands of dollars to track down and recover those lost life insurance proceeds, time and money that could certainly have been better spent. By placing all your important documents, including your life insurance policy, in one location you will relieve your family of this type of burden. Of course it is important that you share that location with your family as soon as everything is in place.
There are many places that can serve as this central repository. Some people will feel more comfortable keeping these important documents in a safe deposit box at their local bank. This can provide important protection from fire, flood and other damage that could befall the family home.
Others may want to invest a few hundred dollars in a fireproof safe that can be kept in the home. A side benefit of this approach is that the safe can be used to store not only important documents but expensive jewelry and other valuable possessions as well.
No matter which approach you choose it is important to make copies of all your important documents, including your original life insurance policy. Having copies available will make it easier to replace a lost policy or track down information about it. These copies should be updated each time any changes are made to the original life insurance policy, and the originals in the safe deposit box or home safe should be replaced as well.
By keeping those important documents in a safe and secure place you can relieve your family members of a significant burden at their time of loss. Tracking down a lost life insurance policy is never a fun (or a fast) process, so it is important to keep those vital documents safe and sound. . Whether you choose to accomplish that important goal with a fireproof safe at home or a safe deposit box at the bank, you will rest easy knowing that your family and its future are both well protected.