
How to Store Your Life Insurance Policy
It’s a big step to purchase life insurance—especially because it makes you think about what will happen to your loved ones after you pass away. However, it’s important to understand that when you receive your life insurance policy, your work isn’t done yet. You still need to determine how to store the documents so they’re in a safe place where your beneficiaries can access them if needed.
Preparing to store your life insurance documents
Before you simply put your life insurance documents in a drawer or file them away with other important papers, it’s essential to make at least one paper copy and one digital copy. This ensures that there are copies to refer to in the event your original documents are damaged or destroyed due to a fire or other incident.
In addition, according to the Insurance Information Institute, you should make note of the following information:
- The name of the life insurance company that issued the policy
- The life insurance company’s city and state
- If the company belongs to a group, the name and U.S. headquarters of the group
- The date the policy was issued
- The policy number
- The amount of the death benefit
- The type of policy (whole life, term life, etc.)
- The name and contact details of the agent or broker who sold you the policy
- The date and details of any changes to the policy, for example if you added a rider
Where to store your life insurance documents
When it comes to storing your life insurance policy, make sure that your three versions are each in a different location. Store the original in a secure place at home, such as a lock box or wall safe. Make sure your beneficiaries know how to access it.
If possible, give the paper copy to a family member or professional—such as an attorney—for safekeeping. Inform them who your beneficiaries are so they know whom to contact in the event your beneficiaries need to file a claim.
It’s best to store the digital copy in the cloud and provide your beneficiaries with the information they need to retrieve it. For example, you could create a new Dropbox folder and share it with them.
Multiple policies
If you have more than one life insurance policy, repeat this process for each one. That way, you can ensure your beneficiaries will have access the details they need to file a claim if or when the time comes.
Sources
https://www.iii.org/article/how-should-i-organize-and-store-my-life-insurance-records