Tidying up is so in right now, thanks to organizational guru Marie Kondo. Unless you have been hiding under a rock for the past few months, you too have probably heard of her new Netflix show which features people whose lives are transformed after learning her techniques or “KonMari” method for organization and declutter. And while I’ll leave the whole-house cleaning advice to her- if you peaked in my closets you would see why- I’d like to offer some suggestions for “Marie Kondo-ing” your financial picture starting with your life insurance policies.
I will be the first to admit that the thought of life insurance doesn’t necessarily “spark joy” for many of us,
there is an element of Marie Kondo’s approach to organizing that is relevant. After all, organizing has become so attractive and popular because it offers the possibility of control. So one way to take control of your life and the hereafter is to organize your life insurance and legacy plan.
Here’s how to “Marie Kondo” your life insurance needs:
Organize your policy information and documents
To start, it’s a good idea to keep original policies on hand but this isn’t super helpful if no one else knows where to find these documents. You want to make sure you actually communicate the relevant details of your policies and where to find them to the appropriate people, such as your spouse or your personal representative in your will. Make sure your wealth advisor also has a copy on file.
And just because you bought a policy at one point in time doesn’t necessarily mean that it is still active. Even by just accidentally missing a payment, you could have inadvertently surrendered your policy. Check to see that your premium payments are being paid on-time and from the right account.