Why You Should Advise Your Entourage Of What You Own
We all think we’re so invincible but the reality is that we know we’re not (obviously.. If not we wouldn’t buy insurance would we?). Things can happen very fast. It can be a bad accident, something that doesn’t get you killed but that would make you require more health care than your spouse or parents think you can actually afford, etc. Fact is it’s important for key people in your life to know where to look and who to contact if something serious happens. Finding out that you had a life insurance policy 1 year after your death would be useful but knowing about it from day #1 is much better.
The Best Way To Inform Your Loved Ones
I’ve discussed the importance of having a list of all of your coverages that you can refer to, use when you’re doing your annual insurance review, etc. I think that is also the perfect timing if you’re looking to inform others. There are several different options:
-Sending them by email or actual physical copies
-Printing copies and letting them know where they’d find them if needed
-Having them attached to your will
I try to update this information every year, after doing my review so that for example my family would know that I have life insurance on a personal level, from my work’s policy but also my private online company. It could become even more complex over the years, especially if that accident involved my wife, kids, etc.
It really is preferable to be prepared for the worst outcomes as much as we prefer to think those are impossible/unlikely.