Divorce can seem like a never-ending list of things to update and remember. You’re probably already thinking about bank accounts, utility bills, streaming service passwords and school pick-up permissions.
While you’re moving forward with your life after a divorce, make sure to update your life insurance policy. If you forget this important step, you could inadvertently leave your ex a windfall that you did not intend.
You have likely designated your ex as the primary beneficiary of your life insurance policy. If your divorce wasn’t a friendly one and you do not have other reasons for keeping your ex listed, you’ll want to update your beneficiary designation.
Most insurance policies are “revocable,” which means that the policy owner may change the beneficiary designation at any time. However, some policies do have “irrevocable beneficiaries” that can’t be changed after they are designated. The easiest way to find out your situation is to call your insurer directly.
While you are changing your beneficiaries, you’ll also want to take a look at your policy information. You’ve likely listed your marital status as “married.” You may also want to adjust the value of the policy based on your new needs.
If your divorce agreement will leave you as a single parent, it is especially important to obtain a life insurance policy on yourself, just in case. That way, your child’s financial interests will remain projected if something happens. Knowing this can give you peace of mind that your children are financially protected—no matter what.
If you are the primary custodial parent and receive child support payments from your ex, it may also be a good idea to maintain a life insurance policy with a payout big enough to compensate for lost child support payments in the event of your ex’s death. Calculate the value of the payments until your child is grown and adjust the life insurance policy accordingly.
A financial advisor can also help you make important financial decisions, like whether to take out a life insurance policy. After a divorce, it’s important to get your own financial advisor to guide you. Your financial advisor can give you specific advice based on your own financial situation.
Reach out to the lawyers at the Schneider Law Firm, P.C. with questions about the divorce process, the details of your divorce and how to move forward. Our law firm represents parents in Fort Worth and the surrounding areas in a wide range of matters related to divorce.