Why insurance policyholders could leave their money to the wrong people

While we can spend much of our life making money, it is sensible to think about what happens to our financial resources when we have passed on. For many people, ensuring their money goes where they want it to is extremely important.

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Check the fine print

When it comes to insurance policies, people sometimes forget to review who the beneficiaries of their policies are. Things change, especially if a policy was set up several decades ago, and at some point it may be necessary to dust off old policies and look at where the proceeds will end up.

Pension rules keep changing too, as do regulations regarding tax. While your pension may be set up to see you comfortably through retirement, there may be some left over, for those close to you to benefit from when you have gone. For more tips on how to make sure your heirs or loved ones can get some tax-efficient comfort from your pension, see this report in The Guardian.

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Policies versus wills

Some people may be alarmed to know that proceeds from a pension will go to the person who is nominated on the policy, rather than someone named in a will. Research has revealed that even close family members are not aware of what policies or pensions parents or siblings might hold or who the beneficiaries might be.

When updating paperwork, it is an excellent idea to look at everything and make sure all aspects and beneficiaries are aligned to prevent needless disagreements and distress. If you think you might want to use the services of an independent financial advisor Wiltshire is well-served, and it would be a good idea to look at local services by searching online for ‘independent financial advisor Wiltshire’, for example. Although you may also be wondering why use an independent financial advisor, by doing so, you tap into specific knowledge and skills which can assist your money management techniques, save you money and help you reach your financial goals.

While many people put off sorting out the details of their pensions and insurance policies and doing the necessary work of keeping them up to date, it is a worthwhile thing to do. Those who are left behind and grieving will certainly appreciate this in a difficult time.


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