When a loved one is ill, and they may be even close to death, it is time to review your insurance so that your insurance professionals can assist and help lighten the burden at this time.

It is also good for an agent to review the situation and work with you in case the family attorney or CPA should be brought in. At this time, making sure everything is arranged will eliminate problems and may be the last time any issues can be corrected.

What may seem as a difficult task, is usually very easy for the agent to arrange. He can make a to-do list that ensures the insured's final wishes are carried out.

1. If you don’t have copies of all life insurance policies, obtain a duplicate or a certificate of insurance. This will tell you:

• Ownership
• Beneficiary (ies)
• Payment status and method of payment
• status us coverage and any lapse danger
• What date the policy is paid through
• If there is a living benefit available in case of terminal illness

2. Collect all policies that your spouse may be the owner of, this may be on children/grandchildren or employees

Decide on ownership change in order to continue continued coverage

3. Check that your spouse is capable to make decisions

• Ascertain if your spouse is legally, mentally, physically and emotionally able to make changes in life insurance.
• Determine if anyone other than your spouse has the legal capacity to make changes.
• Determine if any changes made will affect the policy proceeds inclusion in the taxable estate.

4. Find out if there are any ways to maximize or increase benefits

• Check for any guaranteed insurability riders enabling the purchase of additional insurance at specified ages or other triggering events.
• Review any recently lapsed policies, can they be reinstated
• Are their additional options of increasing coverage outside the current contract ie. chargecards

 

5.Check payment options and beneficiaries on all in force policies

• Confirm each beneficiaries' name, relationship and portion of benefit.
• Ensure a contingent beneficiary. or maybe select a favorite charity
• Discuss what payout for each policy will be appropriate, lump sum or payment over time.
• Would it be appropriate to have an attorney setup a trust to help with the benefits

These steps are not required, or a comprehensive list. They're not even necessarily in order. This is meant as a general guide to help you organize and set priorities at a time in your life when that kind of structure may be needed.