Looking at your finances can be a little confusing. Along with making sure that your finances are on track with your lifestyle, it is important to make sure that you have all the necessary documents to keep your finances in check. Make sure to collect these documents to keep your bank account under control.
- Beneficiary forms – your beneficiary forms will dictate who will receive the death benefit of your life insurance policy after you pass away, even if it is not included in your will. Having the right beneficiary forms will help to ensure that your life insurance policy does not have to go into probate.
- Living will – having a living will is the best way to communicate your medical preferences to your loved ones in case you fall ill. Living wills will help your loved ones make any tough decisions regarding your health if something were to happen to you. Keep in mind that you will have to choose a health care proxy in your living will, who is someone who will be responsible for carrying out your wishes.
- TOD/POD instructions – another way to transfer assets to a beneficiary without a will is with a TOD, transfer on death, or POD, payable on death. PODs are typically linked to your bank account, while TODs are linked to any brokerage accounts that you hold that do not have any other beneficiary form.
- Power of attorney – if you are no longer able to make your own decisions concerning health care and legal affairs, your power of attorney will give someone else the right to make the decisions.
For more finance protections tips, contact the insurance professionals at Dean Davis Insurance in Austin, Texas. We can help with all of your financial needs to ensure that you stay financially sound.