Many of us buy life insurance policies because we believe that it will make lives of our near & dear ones a bit comfortable in our absence. It will take care of mortgage and give them much needed financial security – if we are not around. But how often this money reaches to the right people? How much money is locked in the insurance firms or drown under the pile of information?
Like you, I used to think that money always reaches to the right hands. However, when I looked around, that was not the case.
As per the unclaimed assets website, there are £2 billion worth of unclaimed policies in the UK alone. As per this article in Yahoo Finance, 1 out of every 600 people is the beneficiary of an unclaimed insurance policy.
One of the main reason for these unclaimed assets is – Information loss. Often, policy holder forgets to update beneficiaries about the various insurances they might have. Not only that, family members forget about the insurance policies due to its long term nature. For many people, this information (Policy papers, numbers etc) can also be lost as a result of natural calamities, fire, theft or other such accidents.
In the case of Mary Lou Sowa, she did not have information about all the policies held by her father. The insurance firms also did not give information about additional policies. She was lucky to receive a check a decade later but not all are as fortunate as Mary.
All these incidents highlights the importance of transferring the information to the right people at right time. I would not want my hard earned money to lie unclaimed with insurance companies.
Having an insurance policy is the essential thing to do, but it’s not enough. It is important to plan and ensure that benefit of the policies reaches to the right people at right time. We created Planned Departure to ensure that you can safe guard and distribute important information to the right people at the right time – so that they can be benefited by your good planning,