If a loved one passes away, beneficiaries should be prepared to locate the life insurance policy. This includes not only knowing where the life insurance policy is located, but understanding what the loved one wanted the benefits to be put toward.
In an interview with local Fox affiliate WJW-TV Independence attorney Sandra Kelly said she helps clients deal with the finances of a recently deceased loved one on a daily basis. But when she had to deal with her own father's life insurance policy after he died suddenly from cancer, she realized how easy it is for family members to misplace documents or still have questions to be answered.
Kelly had to contact the state of Ohio Department of Insurance to find more details about her father's policy, in order to properly carry out his last wishes. This is important, as many insurance providers do not check death certificates in order to find out which clients may have passed away. Rather, it is up to the beneficiaries and family members of the deceased to collect from the policy upon the death of a loved one, the source reported.
It is not only important for family members to be aware of a life insurance policy, but for policyholders to start planning early. Even though single adults do not have many people depending on them financially, they might get married and start a family in the near future. In this scenario the individual would benefit even more from life insurance protection. Therefore, early life insurance planning can generally offer lower rates and keep consumers prepared for the unexpected, columnist Sheryl Nance-Nash wrote for NewsDay.