Don’t Forget These Important Steps With Your Life Insurance Policy
Life insurance is one of the greatest gifts you can leave your family.
At Moore Funeral Home, we regularly work with families who use life insurance to help cover funeral expenses and ease the financial burden that comes after a loss. Some policies are large and help create long-term financial security for surviving family members, but most of the policies we deal with are smaller policies intended specifically for final expenses.
And honestly, those policies are often lifesavers for families.
I see countless situations where a family simply would not have had the means to pay for funeral expenses on their own. Because their loved one planned ahead and maintained a life insurance policy, everything was covered. During one of the hardest moments in life, that foresight removes an enormous amount of stress and uncertainty.
Make Sure Your Beneficiaries Are Current
Over the years, we’ve seen many policies where the listed beneficiary was someone who had already passed away, often a spouse or parent.
When that happens, it can create major delays and complications during the claims process. The insurance company then has to determine the legal next of kin before funds can be released. At a time when families are already grieving, that extra paperwork and delay can become frustrating and stressful.
We’ve also encountered situations where the beneficiary was an ex-spouse.
In one case, the ex-spouse refused to assign the insurance proceeds to help pay for the funeral expenses. As a result, the surviving children were left having to cover the funeral costs themselves.
Situations like that are heartbreaking and preventable.
Be Careful About Borrowing Against Your Policy
Another important thing many people don’t realize is that borrowing against a life insurance policy can reduce the amount available to your family later.
While policy loans can sometimes help during difficult financial situations, they should generally be avoided unless it is an absolute emergency.
If a loan against the policy is not repaid, the outstanding balance will typically be deducted from the face amount of the policy when a death claim is filed. Families are often surprised to learn the policy payout is much lower than expected because money had previously been borrowed against it.
A Simple Review Can Protect Your Family
If you already have life insurance, that’s fantastic. You’ve already taken an important step to protect your loved ones.
Now take a few minutes to review your policy and make sure:
- Your beneficiary information is current
- Contact information is accurate
- Your intended beneficiaries are still appropriate
- You understand what the policy covers
Major life events like marriage, divorce, the death of a loved one, or the birth of children or grandchildren are all good times to review your policy.
It’s a small task that can make a huge difference for the people you leave behind.
If you have questions about your life insurance policy or need assistance updating or changing your beneficiaries, feel free to give us a call at Moore Funeral Home. While we’re not insurance agents, we work with these policies every day and are always happy to help point families in the right direction.











