An emergency is not the time to start searching through drawers, old emails, and filing cabinets for an insurance policy, account number, or legal document.
Whether a family is dealing with a storm, hospitalization, unexpected death or simply a situation in which someone else must temporarily handle the household finances, knowing where important information is kept can make a difficult time a little easier.
The goal is not to put every private financial detail where everyone can see it. It is to make sure a trusted person knows what exists, where it can be found and how to access it when necessary.
Start with identification and legal documents
Keep birth certificates, Social Security cards, passports, marriage certificates, and military records in a secure location. Families also should know where to find wills, powers of attorney, advance directives, trusts and other estate-planning documents.
If an attorney prepared the documents, include the attorney’s name and contact information.
Make insurance easy to locate
Create a simple list of insurance coverage, including homeowners or renters, automobile, health, life, and long-term care policies. Include the company name, policy number, and contact information.
You do not necessarily need to keep copies of every policy in the same folder. A one-page guide showing where each policy is stored may be enough.
Create an account inventory
A trusted family member should be able to determine where checking, savings, retirement and investment accounts are held. The same applies to mortgages, credit cards and other debts.
For security, an emergency list does not have to include full account numbers or passwords. Listing the financial institution and the type of account can provide a starting point while protecting sensitive information.
Remember regular household obligations
Someone stepping in during an emergency may need to know which bills are automatically paid and which require action each month. Utilities, insurance premiums, mortgage or rent, credit cards, subscriptions and other recurring expenses can be included on a household payment list.
This is also a good place to note important contacts such as a financial adviser, accountant, attorney or insurance agent.
Plan for digital access
More financial information is stored online than ever before. Consider using a reputable password manager and making sure a trusted person knows how to access it in an emergency.
Avoid keeping a printed list of passwords in an obvious location. The objective is to provide access without creating an unnecessary security risk.
Tell someone where everything is
A perfectly organized emergency file does little good if nobody knows it exists. Tell at least one trusted family member or designated representative where the information is stored and how it can be accessed.
Review the file once a year and after major life changes such as a move, marriage, divorce, retirement, new insurance coverage or opening or closing financial accounts.
Preparing these records is not just for older adults. Young families, single adults and households at every stage of life can benefit from having an emergency financial roadmap.
The most useful emergency file may not contain every financial document you own. It simply gives the people you trust enough information to know where to begin.
First Horizon Bank is a leading regional financial services company, dedicated to helping our clients, communities, and associates unlock their full potential with capital and counsel. It’s the powerful tools you need with the personal service you deserve. Contact First Horizon for all your banking needs.
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