As you organize your important documents, remember to adjust your file to your needs. In sharing a way to organize, I use my file as a guide.

If there is only one adult in your household, then you will only need one file opening. However, if your family has more than two adults, then you will need more file slots to house those documents.

My system works for me which may or may not work for you. Feel free to copy my file while choosing an organizing pattern that fits you and your family’s needs.

In our life insurance category, I have allotted three file openings to house these documents. My husband’s policies go in the first slot, my records in the second, and our children’s documents in the third pocket. Working with my policies, I have three bundles: term life insurance, combination life and long-term care, and accidental death.

Accidental Death Insurance

Just this week I received notification that one of my accidental death insurance policies has changed carriers. Our credit union chose to move from one provider to another, and the letter of this change arrived on my desk this week.

Accepting the Free Coverage

Since I already have the free-to-me base coverage, my policy will continue, but I must name my beneficiaries.

Choosing your Beneficiary

Per this letter, I must contact the new company in writing with my beneficiary designations. I plan to send my primary and contingent beneficiary designations to this new company pronto.

My choice is one primary and two contingent beneficiaries. In this way, I am offering the insurance company multiple ways to get the policy distribution to my family.

Documents Kept Safe

This policy along with two others, provided through our credit unions and credit card company, include the following documents:

• Certificate of Insurance,
• Correspondence from Provider, and
• Beneficiary Designations

Each set of policy documents is paper clipped together. Then these three sets are paper clipped and housed behind my combination whole life and long-term care insurance documents. All these items are then placed in the third file opening of Box 2, holding our important insurance documentation.

This third bundle of documents completes the third file opening. Woo hoo! Making progress is exciting as we get organized while using time wisely. Designating a home for your paperwork and labeling your categories makes retrieving those documents quick and easy.

Using time now to organize and create a space for your important documents will save you money from replacing missing papers, energy from sorting through piles of paper, and time from searching for that special place you put it, so you wouldn’t forget it. 🙂

If you are struggling to schedule time organizing your documents, plan to work for 10 minutes when you pay/schedule your bills for the month. Try to schedule a time when you are naturally located where most of your important documents are in reach.

Just take it one document at a time. This project does not need completion today, this month, or this year. A little here and a little there will get you further than rearranging the piles. Start where you are, and happy organizing!

Question: What obstacle prevents you from organizing your important documents? 

Though I would not normally invest in a life insurance policy for our children, Paul and I do have one life insurance policy that covers all three of our children.

For us, the purpose of life insurance is to cover our family expenses after our deaths. Our children would not leave any debts or responsibilities, so we choose not to carry policies for each of our children.

The one policy we carry is a group policy through Paul’s employer. The cost is less than $3 per month and holds coverage for $15,000. For the inexpensive price of this coverage, we have chosen to carry this insurance for our children.

Housed in the fourth file opening of Box 2 of our important documents, the life insurance documentation for our children’s policy includes the summary page and information page.

Summary Page

This summary page has the contact information for the benefits administrator, benefits identification number, and employee number. Click here for more details about this summary page that I keep at the front of each file opening to make access quick and efficient.

Information Page

To make a claim, we must contact the benefits administrator at my husband’s office. The benefits administrator works with the provider directly. Therefore, we do not hold a paper copy of this policy.

In setting up this file, I contacted the benefits administrator and requested a detailed explanation of where, when, and how to send a claim. I typed that information creating an information page. In the awful event that we need to file a claim, Paul or I will get this document and follow the steps.

Tracy’s Tip: Waiting until tragedy strikes to get this information will add anxiety and stress during your time of grief. Researching now and writing down the instructions will save you time, energy, and stress in the future.

The information page includes:

• How to Make a Claim
• How the Payment is Dispersed

These two documents complete the fourth file opening and the second category – life insurance. As my children grow, we may decide to carry policies for each of them. If and when that time comes, I will place those policies in this file opening.

You may need more file openings for your insurance documents. If you carry policies for your children or parents, then you may need a file slot for each person. Keeping your file organized by either insurance type (term, long-term, accidental, etc.) or by person (Dad, Mom, Child #1, etc.) will help you in using time wisely to reach those documents.

This process is a marathon. I worked for 3-4 months exclusively on these files when I set them up. At that point, I was a stay-at-home wife and had the time to invest in organizing and researching the information. If I were setting up my file now, then it might take a few years. With three little ones, spending time training them is a top priority.

If you struggle with organizing your paperwork, then consider your schedule. I pay/schedule bills twice a month. During this time, I am near my important documents and spend 15 minutes filing, organizing, and updating my files. Find a time when you are already near those documents. Planning to organize is one step closer to executing your goal. Happy organizing!

Question:  When are near your important documents, what are you doing?