Life is transitory/uncertain. We don’t know what future has in store for us. It’s important that we make our family secure by taking necessary steps for our family after we cease to exist. This will ensure that our loved ones are protected from financial and legal problems during the time/emergence of any unforeseeable circumstance. By taking below mentioned necessary steps, we can get our affairs in order.
Have life insurance, disability insurance and critical illness insurance
Purchase adequate life insurance policy which may save your family from any financial crisis even if you are not there to protect them. Also, if you are working in a field involving physical risk, it is essential that you purchase coverage for disability insurance. In addition, critical illness insurance protects you against 25 life-threatening diseases. To understand your requirements, it is vital that you seek the help of a qualified insurance professional from Punjab Insurance Agency Inc.
Always keep your address and phone number updated.
This will enable various financial institutions/other agencies to be in constant touch with you. In a country like Canada, we all know that the place of residence is usually not stable. Most people move to different places and change their contact number accordingly. If by chance, the insurance premium cannot be deducted from your bank account due to non-sufficient funds or any kind of technical reason/error, in order to keep your policy active, there is a grace period. After the grace period, your policy becomes voided and necessary steps need to be taken to reinstate it. In this situation, it is very essential that the insurance company and insurance agent should be able to reach you in a timely manner. It will be possible only if they have your updated address, contact number and email. Always keep your contact details updated.
If the mortgage amount changes, you can change the mortgage insurance
You can change the amount of mortgage insurance if the mortgage amount changes. We usually tend to upgrade our house with the passage of time. If you upgrade your house, then the mortgage amount also needs to be updated. You may need to adjust your mortgage insurance accordingly. It is suggested to stay in touch with your Insurance Advisor on annual basis, who is local to you.
Always check your insurance regularly for your designated beneficiary
Your family composition may change with the passage of time. The unmarried individuals get married in future and may want to designate their spouse or children as their beneficiary while those already married may have added new family members. Also, a divorce may lead to other changes. Thus, you may want to modify the beneficiary in the insurance policy. Always keep the beneficiary information updated by regularly monitoring your policy.
Keep your insurance updated for any change in your medical condition
It is vital that you must keep a close check over your health for any emerging major health issue. If you experience any such health issue, to cover the corresponding risks, you may want to convert your term coverage to permanent coverage so that you are protected during times of need. In case of any unforeseeable deterioration in your medical condition/health, the document becomes even more vital for you. You should always keep your insurance policy in a se – cure place. Because, due to deterioration of health, the chances of getting a new policy would become even bleaker.
Specify where important financial and nonfinancial information is located
Always keep a list of your financial documents such as bank account numbers, savings and retirement plans, insurance policies, mortgage, college funding plans and non-financial information such as birth certificates, marriage certificates, property papers, passports, jewellery etc. It should then be placed in a fireproof place such as a file cabinet, bank safe, home safe etc.
Prepare a list of professionals who help you manage your financial and legal matters such as accountant, lawyer, and insurance agents.
Have a will and keep it updated
It is vital that you should have a will in which you will designate your executors, guardians and trustees. Keep the document in a fairly obvious place so that your execu – tor may locate it when required. It is better if you keep it in a sealed envelope labelled with your name and ‘Will’. It should then be placed in a fireproof place such as a file cabinet or home safe.
Have a power of attorney
Name your spouse, relative or a close friend to have power of attorney for you. This decision/step will enable him/her to manage your affairs in case you are unable to handle them.
Have a health care directive
You write this directive in advance to specify your preference for treatment deci – sions that should be followed in case you are unable to give directions for the same. This document is also known as a ‘living will’. In a country like Canada, where we are seeing increasing instances of people with psychological problems, to ensure proper treatment during any unforeseeable illness, you must have a health care directive.
for final rites such as burial/cremation and donation of organs. In this manner, you will bring a ray of light in somebody’s life and will pass over your legacy to future generations.
By undertaking such simple measures, you will be able to ensure the well being of your loved ones even when you are not around to fulfil their needs. As an independent insur – ance advisor working through Punjab Insur – ance Agency, I deal with different insurance companies offering plans for different types of insurance. I can explain to you in detail, various insurance plan op – tions and coverage that are suitable for your needs and resources.