Handling your life insurance policy after divorce.
Going through a divorce is never nice. It can cause upset and disagreements between families. While you’re busy separating out the items in the house, it’s wise to consider how your life insurance will be affected. After all, it’s likely that you are both each other’s beneficiaries. If this is the case, take a look at these tips on how to manage life insurance after a divorce.
If you have a life insurance policy for yourself, chances are you listed your spouse as a beneficiary – or the person to whom a payout would be made if you died. Depending on your situation and the presence of children, you might consider changing your beneficiary. Also, if you have a will, you may need to make changes to it to reflect your current wishes should you pass on.
Alimony and child support payments
Determine how much life insurance coverage you need by examining what your ex-spouse’s financial situation would be like if alimony/child support payments ended. Talk to your insurance agency to arrive at a specific amount.
Discuss the duration of coverage
The time frame for any obligatory life insurance coverage varies, often depending on the length of the court-ordered alimony/child support. These are typically temporary needs. Ask your insurance agent about a term policy which could be used to help meet the financial obligations of raising your children or providing your ex with financial support should you pass away.
Going through a divorce is stressful enough without having to think about life insurance – but it’s important that you do consider your needs. To speak to a team you can trust, contact the professionals at Massive Insurance. We are ready to get you the right life insurance coverage today.