Thank goodness for electronic billing, bill-pay and account access. The digital world can help you save time, be more organized and cut down significantly on paper… Significantly — but not completely. Show To hold for a year or less (with some buts):Monthly utility/cable/phone bills: Once you know the bill is correct, toss it. But if you deduct some of these costs on your tax return, you’ll want to save them with your return (more on that in a moment). To hold for longerTax Returns: You don’t want to be missing tax-related documents if Uncle Sam has questions about your tax returns. Hold the returns and supporting documents for at least seven years. The IRS can randomly audit you three years after you file — or six years afterward if it thinks you skipped out on reporting your income
by at least 25%. To hold indefinitelyLoan paperwork: As long as you’re still paying a loan (car, mortgage, student loan — the works), keep all your docs and contracts. When you pay off the loan, the lender will give you a payoff statement. Keep this forever,
just in case some zombie debt comes back to haunt you.
A few thoughts on e-documentsIf you prefer digital to paper, you can download account statements and keep the electronic versions, but make sure they have a place to live that’s beyond your hard drive. Editor's Note: This article originally appeared on Consumerist. How many years of insurance policies should you keep?The best practice is to keep the policies forever. If you are confident that you will not have any claims brought against you for latent matters, a good rule of thumb is to keep the policies for six years. Nearly all potential claims will have expired within this timeframe.
How long must insurance companies keep records?A. A policy record file shall be maintained for each policy issued, and shall be maintained for the duration of the current policy term plus three (3) years, or for life insurance policies and annuity contracts, for the time the policy or contract is in force and three (3) years thereafter.
Is an old life insurance policy worth anything?A policy that lapsed before the policyholder died has no value. But if the policy was still in force when the insured died, that policy's death benefit may still be available to the beneficiary. Note that the death benefit amount could be different from the policy's original face value. Several factors can cause this.
How long do car insurance policies last?Car insurance policies usually come in two durations: six months and 12 months. Six-month policies are more common than annual insurance policies, as they allow insurance companies to easily recalculate rates, factoring in routine price revisions and changes to your driving profile.
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