ALL >> Insurance >> View Article
Keeping Track Of Your Life Insurance Policies
It is not unusual to meet people who have misplaced their insurance policy documents or those who are not aware of how much their policies are worth. In such cases, the whole purpose of purchasing insurance may be defeated. Read on for some simple tips on how you can keep a track of your policy (ies)...
There are two aspects to keeping a track of your policies – keeping a physical track of them and keeping a financial track of them. Here are some tips that will help you keep a track of your policies from both angles…
Keeping A Track – Physically
This involves being organized regarding where you keep your policies and information regarding them. It also involves keeping your nominee and loved ones informed about the whereabouts of your policy document.
1) Keep all your important documents – your insurance policies, your house ownership papers, passports, etc., in one place.
2) Keep two sets of records of all your important documents – one in a physical copy, perhaps in a diary and one in an easily accessible soft copy. For instance, you could share a google document with your ...
... loved ones and everything about your policy – where it is kept, how it can be claimed, etc. can be mentioned there.
3) From time to time, let your nominee and loved ones know where you keep your important documents (including your insurance policies) and your comprehensive list of documents. If possible make the creation of such records a joint effort with your spouse or some other member of the family so that someone other than you is aware of what it contains and where it is.
Keeping A Track – Financially
Some insurance policies – such as term plans and non-participative money back or endowment plans - are relatively simple to keep track of. The sum assured is the only amount of money that can be expected and the time frames and conditions for payouts are clearly stated. Inthe case of Unit Linked Insurance Plans (ULIPs), you are allotted units that make up your investment and the value of the units change from time to time. In the case of participative policies, your life insurance company gives out bonuses either at intervals or at maturity, if its investments do well.
If you have purchased ULIPs:
Create an excel sheet with the number of units that you hold and the value of the units. Make it a point to review this sheet at least every quarter. Check how the units are performing against a benchmark.Although you may receive the option to switch between funds without any cost once a year, don’t use this facility unless you can benefit from it.
At least once a year, update your records (mentioned in ‘Keeping A Track- Physically’) with respect to the value of your units. Make a mention of any activities that you undertake – such as withdrawals or top ups – in your records.
If you hold participative policies:
You will usually receive an update from the company once a year. Make sure that you note down any relevant information, pertaining to bonuses, in your physical records.
End Note
While these may seem like rather time consuming activities, once you actually get down to doing them, you will realize that they are relatively simple and effortless. In fact, in the long run, they could save you or your loved ones valuable time.
Add Comment
Insurance Articles
1. 6 Qualities Of A Reliable Music Insurance CompanyAuthor: victor12johnson
2. 5 Common Mistakes To Avoid When Getting Violin Insurance
Author: micheljordan4
3. Understanding The Need For Clarinet Insurance
Author: musicinstrumentsins
4. A Guide To Insuring Your Music Studio
Author: victor12johnson
5. Audio Equipment Insurance For Home Studios: Is It Worth It?
Author: micheljordan4
6. Best Astrologer In Hoodi
Author: Astrogroup
7. Explore Microsoft Software Solutions With Vexil Infotech
Author: vexil infotech
8. Vexil Infotech: Your Trusted Partner For Nbfc Loan Management Software
Author: vexil infotech
9. Why Choose Business Loans Over Other Options?
Author: Capital Business
10. A Comparative Analysis Of Dedicated Piccolo And Home Insurance Plans
Author: musicinstrumentsins
11. Common Perils Faced By String Instrument Owners
Author: victor12johnson
12. The Strategic Importance Of Financial Advisory In India's Growing Economy: Trends, Challenges, And Future Prospects
Author: Drishti Desai
13. The Hidden Costs Of Health Insurance
Author: Algates Insurance
14. Explore The Journey Of Saxophone From Raw Brass To Musical Beauty
Author: micheljordan4
15. Comparing Comprehensive Home Insurance Plans: Tips For Uae Residents
Author: Stephan Rose