Slow, steady, and consistently organizing those important documents will get your paper piles organized and easily accessible.
Concentrating on this second box of important documents, our personal insurance documents fill the first file opening in our accordion filing system.
The second slot holds the head of household life insurance documentation.
Having completed the second file opening last week, let’s focus on the third opening which has life insurance policies for the head of household’s spouse.
If you are a single-parent with an adult child with his own insurance, you can place his life insurance in this next file slot. Remember to adjust the filing system to work for you. 🙂
In my filing system, this third slot holds my life insurance documents. Like Paul, I also have three types of life insurance:
Term – Part 1
Combination whole life and long-term care – Part 2
Accidental death insurance – Part 3
Term Life Insurance Policy
Realizing the pros and cons of term life insurance, Paul and I decided that term insurance met our family’s needs. The premium price fit our budget, and the policies have served us well.
With our original 10-year terms coming to an end in the next couple of years, we are planning to replace these policies with new 20-year terms. Yes, this is a significant increase in our annual premium, but the term will extend through our children’s childhood.
Using SelectQuote, I chose my term life insurance policy. In replacing our current policies, we are again working through SelectQuote. Impressed by the service, detail, and accuracy of information, I found our agents helpful in securing our term life insurance policies, and I look forward to working with them again.
In this file opening, I keep these documents about my term life insurance policy:
1. Summary Page. This summary page indicates the policy number, insurance company, contact information, beneficiary information, and website access information and passwords.
2. Receipts. Each year I receive a premium notice with the policy number and amount due. After paying the premium, I note the date, amount, and payment type. I then keep each year’s notice as proof of payment for the life of the term. If there were a question about the policy cost, I will have proof of our payments.
3. Privacy Policy. When my insurance company merged with another company, the privacy policies changed. I keep the new privacy policy notice with the policy for future reference.
4. Merger Documentation. Since my policy was with the first insurance company and that company merged with another, I keep all merger letters and endorsements for the life of the term.
5. Beneficiary Changes and Notifications. When our lawyer completed our estate planning documents, he handled the beneficiary notices for our life insurance policies. To protect my family, I have chosen primary and contingent beneficiaries. These notices stay in this file.
6. Policy. This booklet details my contract with the insurance company including how, what, where, when, and how much they will disperse the policy amount to my family in the event I pass away. Having all these details nailed down now will cut the amount of stress on my family after my death.
7. Additional Correspondence. The last items in this bundle are the application, copy of first payment, and notes from SelectQuote conversations.
Placing these items in order, I paper clipped them together. These items are the first of three bundles housed in the third file opening of Box 2. Keeping these documents together with the other insurance documents saves me energy and time.
In using time wisely to support these files, I check these documents annual to protect my family. Your important documents are more than just paperwork. They are your family’s protection, and spending time to get organized will save them money, energy, and time. Keep organizing!
Question: What type of insurance have you chosen to protect your family? Please add your answer to the comments.
