Where to keep your policy and who to tell about it

Keep the paper policy, or a copy, somewhere your family can reach in the first days after a death, and tell the people who will handle your affairs that it exists. A beneficiary cannot claim a policy they do not know about, and a policy stuck in a locked box no one can open can delay a claim. The simplest system is a folder or fireproof box at home, a record of the key facts kept with your other estate papers, and a conversation with your beneficiary and executor.

Why this matters

Unclaimed life insurance is a recurring problem. Beneficiaries often find out about a policy late, or never. Searching for a lost policy is possible (see how to find a lost life insurance policy, the The NAIC Life Insurance Policy Locator: how to use it and the lost life insurance policy finder tool), but it is slow and uncertain compared with a family that simply knows where the paperwork is. An insurer that does not hear from a beneficiary may eventually turn unclaimed proceeds over to the state (see unclaimed life insurance money and state unclaimed property).

What to keep, and where

Home, safe deposit box or digital?

• Fireproof home box or file. Easy for family to access. Make sure someone knows where the key or combination is.
• Safe deposit box. Secure against fire and theft, but access after a death can require paperwork, and in some states there are restrictions on who can open a box. If you use one, add a co-signer or tell your executor how to get in. Do not keep the only copy of your will there if opening it is difficult. Your attorney can advise on your state.
• Digital copies. A scan of the policy and summary page in a secure password-protected storage account, with access shared through a trusted method, gives a backup. Consider using a password manager's emergency-access feature rather than writing passwords on the summary page.
• With your attorney. If you have an estate plan, ask the attorney to keep a copy of the summary page with the plan.

Do not rely on the policy being found with your will. A will is often not read until after the claim paperwork is under way, and life insurance generally pays by beneficiary designation rather than through the estate; see does life insurance go through probate? and life insurance and your will.

Who to tell

1. Each beneficiary. Tell them the insurer's name and that they are named. You need not share the amount, but sharing it avoids surprises. Naming a minor or a trust deserves a talk with whoever will manage the money (see naming a minor child as life insurance beneficiary and naming a trust as your life insurance beneficiary).
2. Your executor or the person who will manage your affairs. They will search for assets and need to know to look.
3. Your spouse or partner, even if they are not the beneficiary.
4. Your agent or the insurer, who can add a note to the file and confirm contact details.
5. Your estate attorney or financial planner, who may need to coordinate policies with your estate plan.
6. A trusted backup: an adult child, sibling or friend who knows where the summary page is.

A one-page summary to write today

Keep this page with your estate papers and update it when anything changes:

1. Insured and policy owner names.
2. Insurer name, policy number and type (term, whole life, universal life).
3. Face amount and, for term, the date the term ends.
4. Beneficiaries and contingent beneficiaries.
5. Insurer's service and claims phone numbers and mailing address.
6. Agent's name and contact information.
7. Where the paper policy is stored and how to open the box.
8. How premiums are paid, and the date.
9. Date this page was last updated.

Keep it current

• Review once a year. The how to review your life insurance policy every year and the annual life insurance policy review checklist can double as the moment to refresh the summary page.
• Update after life events. Marriage, divorce, a birth or a death should prompt a check of beneficiaries (see how to change your life insurance beneficiary). After a divorce, state law may or may not remove an ex-spouse; do not rely on it (see divorce and your ex as beneficiary: revocation-on-divorce laws).
• Update after a move or a name change. Tell the insurer, so statements and notices reach you. Missed notices are a reason policies lapse.
• Update if the insurer is acquired or renamed, which can change the claims contact (see when your life insurance policy is sold to another company).
• Workplace coverage is easy to forget. Group life through an employer is often not in the policy folder at all. Note it on the page and tell your family which employer to call (see employer group life insurance: what it really covers).

What a family does after a death

The beneficiary contacts the insurer, provides the policy number if known, and submits a claim form and a certified death certificate. If they do not have the policy, the summary page speeds this up; see how to file a life insurance claim and the life insurance claim checklist.

Key takeaways

• Keep the policy and a copy of the application where family can reach them, and keep a one-page summary with your estate papers.
• Tell your beneficiaries and executor which insurer holds the policy.
• Safe deposit boxes are secure but can delay access after a death; add a co-signer or share access instructions.
• Update the summary after any major life event, move or beneficiary change.
• If a policy goes missing, the NAIC locator and your state unclaimed property office are the places to search.