Many individuals who get married place emphasis on taking out Life Insurance cover to protect their families in the event of death.
However, when going through emotional stages of a divorce, reviewing and updating your life policy can often be the last thing on your mind.
Experts however advice that partners should factor in unfortunate circumstances like a divorce when taking Life Insurance for their families especially if there are children involved.
Here are five options of what to do after a divorce.
- Changing Beneficiaries: if you are no longer technically dependent on each other, you should review and update your beneficiary details. This is to ensure that correct beneficiaries are paid, should anything happen to one of you.
- Banking Details: Individuals who are paying their policies from a joint account should contact their insurer and update their banking details, to avoid the policy lapsing if premium payments are no longer honored.
- Financial Needs of Children: When there are children involved, an agreement should be reached by both parties in order to protect them financially should both or one of you no longer be around.
- Sum Insured: Your financial situation may change after divorce, making it necessary to adjust your Life Insurance cover amount to cover any shortfall.
- New Policy: Individuals who did not have a policy of their own while married should now consider taking out their own policy.