Life Insurance After Divorce: What You Should Know
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After a divorce, you may need or want to change your life insurance policy beneficiary. If your ex-spouse had been listed as the beneficiary, you may want to change the beneficiary to be your children, another family member, a friend, or even a charity. You will need to contact your life insurance holder to update the beneficiary.
If your life insurance has a cash value component, like a whole life insurance policy, it can be considered a marital asset. You will need to include the policy in your list of marital assets during the divorce proceedings.
Additionally, you may find that you need a larger life insurance benefit amount after your divorce. If you’ve become a single parent and your children rely entirely on you financially, you may be more comfortable purchasing a policy or a rider with a larger benefit to leave to your children if you pass away. If you can afford the premiums, you might decide to increase your life insurance coverage for extra peace of mind.
If you’re getting divorced, take a careful look at your finances and your savings to determine if you need to adjust your life insurance benefit. This is also a good time to review your policy and ask any questions you might have about your coverage. If you decide you need more or different life insurance, you can get free life insurance quotes online today to explore and compare your options.
Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
