Do You Know Where Your Parents' Life Insurance Policies Are?

Enjoying Retirement

Chasing down life insurance policies and paperwork is the last thing on your mind if you have had a parent pass away. It is a devastating time in your life. As you are trying to cope with the grieving process, you are also in a position to make final arrangements. You do not want to find out during this critical time that you do not have enough funds available to cover all the expenses you will be encountering.

You may feel uncomfortable asking your parents what they have for life insurance needs. I know if my kids asked me that today, I would say, “Do you know something I should be aware of?” Identifying your parents’ life insurance policies will not make the grieving process any easier, but it will help you with making final arrangements, and any financial obligations they may have. It will allow you to focus on what is important, in the moment.

I had a client who was a financial advisor and he died in a tragic automobile accident. His children had to go through all of their father’s policies, banking and investment statements. The paper trail was difficult to follow and at times, they found there were no paper documents. Through their own frustrating experience, the children started their own web service to help people notify major insurance companies, banks, and other financial institutions of the death; and to determine if their loved one had any policies or investments with their firms.

You do not want to be in the middle of a lengthy paper trail or run around to several different financial companies to determine what type of coverage they may have, if any. Not only is verifying if your parents have life insurance important, but reviewing their policies will ensure there is enough coverage for their needs. This is an important step in ensuring that all financial needs will be met.

About the author: Teri Costen has been in the life insurance business for over 20 years. She is a mother of three who enjoys working out, taking aerobic kickboxing classes, and making stained glass. Teri believes that finding the right life insurance policy helps protect your family and loved ones. You can contact Teri at 1-800-651-1953 or TCosten@Pivot.com.