A Letter From The Policyholder To The Nominee - The Importance Of Knowing Where Everything Is

Buying a life insurance policy is more than just a financial or technical process – it can take you on an emotional journey. Buying life insurance requires you to accept that life can take unpleasant turns, and rather than deny the uncertainties of life, it is better to be prepared for them. Similarly, choosing a nominee might seem like a technical step, and it certainly needs careful thought. However, there is almost always an emotional aspect to it as well.  

It is the nominee who must take initiative in raising the claim process and following it through completion. As a policyholder, it is your responsibility to ensure the nominee is aware of where everything related to the life insurance policy is stored, so that, when the time comes for the nominee to take on their role, they are prepared. 

If you are wondering how to best approach this matter with your nominee, you can write a heartfelt letter to them. Here’s a template you can use to get started.

Dear Nominee,

I hope this letter finds you well. You are well aware of how old and deep our bond is. Over the years, I have trusted you with several important matters. Today, I am trusting you to be the nominee for my life insurance policy. While I know that you are aware of what this entails, I want you to have clarity in this matter. 

My decision to buy a life insurance policy and to write this letter to you is not a result of fear. Rather, it comes from a place of love. Life can take unpredictable turns, and while I cannot control the storm, I can at least try to steer the ship in a stable direction for as long as I can. I want you, too, to be prepared and protected when an unfortunate storm strikes us. 

I trust you deeply. Hence, my decision to name you as the nominee. However, being a nominee is more than just a technical detail on a life insurance form. It means that if something were to happen to me, you would be the one responsible for ensuring that everything I have planned reaches you and our loved ones as it should. For that to happen, you need to know where and how I have stored the life insurance documents - and what you should do next.

Where You Will Find Life Insurance Policy Documents

My original life insurance document is stored in the physical format in my bedroom cupboard. You will find it in a folder in the drawer I only use for essential documents. The folder is marked as ‘Life Insurance Policy’. Along with the original policy document, you will also find the insurer’s details, my insurance advisor’s details, and other important information. 

A digital copy of the policy is also present on our family laptop. You can access it in the folder titled ‘Family Finances’. The password for the same is my birthdate. The folder also includes a pdf called Book of Important Things, which has the details regarding my bank details and other investments. 

If anything happens to me, you will be required to reach out to the insurer and file a claim to receive the life insurance proceeds. I do not want you to run here and there in a haze, searching for and gathering documents, while you are still processing grief. The benefits of my financial planning should not come at the cost of additional stress. That is why I have curated these folders. All you will need to do is access the folder and provide the required documents within it to the insurer, along with the death certificate. 

Both the folders (physical and digital) also have contact details of people I trust in our financial matters. This includes our lawyer, our accountant, and our financial advisor. In case of any pressing concerns, you can reach out to them. 

I hope you understand the motivation behind me writing this letter.

When someone passes away, the grief can be overwhelming. Searching for documents, trying to make sense of financial terms, and not knowing what to do next only adds to the burden. I have seen situations where the family had to go through unnecessary stress simply because they were unaware of how things work. I do not want you to go through that. I want you and our loved ones to start the new phase of life with confidence and peace of mind. I may not be there at the time to help you find the way, but this letter is my effort to ensure your path is lit.

If this letter helps you in times of need, I will have done my part. 

Sincerely,
Your Loved One 

Like our policyholder, you also can take a small step today - by writing a letter - to make a big difference to your loved ones’ lives tomorrow. If you have not already, this is your sign to go talk to your loved ones. Have a family sit-down and communicate your intentions. Create a folder/kit where you store all essential documents, contact details, and instructions, and make sure your nominee is aware of its contents and location, or you can also use the Book of Important Things

Also, let your nominee know about Nominee Central, a digital initiative by IndiaFirst Life to spread awareness about the various aspects related to nomination. The more they know, the easier it will be for them to navigate the claim process during a difficult time. 

Conversations like these might not be easy, but they are important. So, go on, write a letter yourself, for your peace of mind today and for your loved ones’ financial security tomorrow.