How Divorce Affects Your Life Insurance Policy

It is important not only to purchase adequate life insurance, but to also understand all the provisions of your policy. This is particularly true in regard to divorce. Should that event occur, you want to be sure that your insurance settlement is paid the way you intended, if you die. Here are some suggestions to consider if divorce either has occurred or is a possibility in your marriage.

First, turn to your life insurance broker who gave you life insurance quotations and helped you through the process of purchasing your policy. If it is a well-established company, such as Travers & Co. Insurances Ltd, they will be able to give good advice and assistance in making any necessary changes.

If, because of dependent children, you want your ex-spouse to continue as your beneficiary, there is not a problem. Life insurance only requires that an insurable relationship exist at the time the policy is purchased. An ex-spouse can keep a policy on the other, if it was started before the divorce and all premiums have been paid.

In this type of situation, you may want to buy less expensive term insurance rather than a whole life policy that accumulates cash value.

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