It happens all too frequently. The beneficiary information on a life insurance policy is not updated. Or the notice of missed payment on a long term care insurance policy is not completed. Things we always meant to get to, but just never got back to.
Long Term Care Insurance
We were reminded last week of how important it is on a long term care policy to fill out the notice of missed payment. The adult child of a customer just discovered her mother had stopped paying her long term care insurance policy and the policy lapsed. She is suffering from dementia. She had not filled in this section of the application when she took out the policy 20 years ago probably thinking she was not ready to give that authority to her then 20-30 year old child. Now that 50 year old child is trying desperately to reinstate the policy to get her mother long term care services.
If you own a long term care insurance policy, check it today to see what information your provided. Does it need to be updated with the insurance company? Is it blank but now you are ready to fill it in? It is a simple statement of who you want to be notified if a payment is not received. Check your policy today and call the insurance company if the information needs to be updated.
Life Insurance Beneficiaries
Life changes and what you wanted to happen with the proceeds of your policy 20 years ago may now bequite different. And in our mobile society in the odds of the contact information still being correct is pretty slim. But you never changed the beneficiary information. The insurance company has no option but to follow the directions you provide on the policy.
Get out your policy and check today to make sure your beneficiary information is up to date (while you are at it, check your any IRAs you have too).