Do Divorced Couples Need A Life Insurance Policy?
A divorce is a difficult period for every couple. Many readjustments are required and important decisions have to be made. Among the things that need to be settled, the life insurance policy may pop up. Do divorced couples still need a life insurance policy? What happens to life coverage during divorce proceedings? Read on and find out!
Think of the children!
Divorced couples should still keep their life insurance policies active for the sake of their children (if they have any) or other financial dependent members in the family. A divorce does not absolve you of all the responsibilities that come with having a family. You can have joint custody with your ex-spouse and share the benefits and hardships of raising children. Life insurance plans are bought to protect the most fragile members of a household: in the case of a family, the children are the ones financially dependent on parents.
Life insurance and divorce proceedings
The results of a divorce settlement can vary, but in most cases the breadwinner is entitled with paying for child support and other pensions if needed. The life insurance proceedings can also be use as a way of providing for your family. The downside is that you may not be able to change the beneficiary, so your ex spouse may still be entitled to the life insurance proceedings if you die during the policy’s terms.
However, keep in mind that life insurance is not considered an asset and cannot be divided during divorce proceeding. The policy belongs solely to the insured and unless the court decides that the insurance proceedings should go to your ex-spouse, you are free to cancel or modify the policy in any way you wish. Make sure to look at some online life insurance quotes to decide if you need another policy or not.
Reviewing your policy
Reviewing your policy after a divorce is essential. Instead of canceling your plan, you can make important changes like naming a different beneficiary. You can name your children as the beneficiaries of your policy and have the money directed into an insurance trust in case you die before your children are of legal age. This prevents you from losing the life insurance policy and secures the financial future of your offspring.
If you want to find the best life insurance policies, you have to compare quotes from top providers. You can find life coverage in a few minutes! Click here and find out how!