What Changes Occur to My Insurance If I Am to Get a Divorce?

Divorce can be a traumatic experience, but it can also be difficult to unravel the life you’ve made together. There is a lot to think about when it comes to your life insurance during what can be a very difficult moment – so we’re here to assist make things a little clearer. It’s possible to modify the terms of your British Seniors joint coverage in the event you and your ex-spouse split up.

How Does a Joint Policy Work?

By purchasing a combined life insurance policy, you’re ensuring that your loved ones will be taken care of regardless of who dies first. Both of you will be named as policyholders, but only one of you will be the primary life insured. Your premiums and paperwork will be combined for ease of administration. When you die, the person you named as the beneficiary of your life insurance policy may also be the one to get the money.

Your Shared Financial Assets

Insuring your loved ones’ future is a wise financial decision. If you and your spouse are going through a divorce, you may negotiate the split of assets, and your policy may be included. In the case of a joint plan with life insurance, you and your ex-spouse are both policyholders. You can’t split it because it’s simply one policy.

What Will Happen to Our Joint Policy if We Divorce?

When it comes to life insurance policy, oly two options exist when divorcing: either cancel your insurance completely or remove the second person from it and allow your former partner to be your only policyholder. What you decide to do with your insurance policy is entirely up to you! It is critical that the principal policyholder informs British Seniors of any modifications they wish to make to the policy.

Should We Cancel Our Shared Policy?

Cancelling is a choice, but it may not be the most cost-effective one. Non-refundable policy premiums aren’t refunded, so if a policy is terminated after the first year, you’ll lose any money you’ve paid. In the event that you decide to cancel your insurance, your loved ones will not get a payout.

When you terminate your policy, you may find it difficult to get life insurance at the same premium because you are now older than when you took out the policy. Premiums for life insurance are typically cheaper for people who apply early in life. In order to keep the premiums you’ve already paid and preserve at least one of you from having to pay higher rates, you can simply remove the second life covered from the combined insurance policy.

Can We Still Share Our Policy if We Choose to?

In the event of an amiable divorce, you may question if you may keep your combined insurance coverage, particularly if you have children together or wish to remain the beneficiary of each other’s estates. While it’s always a good idea to talk to us about your options following a major life change, it’s entirely up to you to decide whether or not to keep your current policy.

Other Factors to Consider

Since it is common for married couples to name one another as beneficiaries on their life insurance policies (whether joint or individual), if you were to pass away, the proceeds would go to your ex-spouse. Please let us know as soon as possible if this isn’t what you’d like to have happen.

If you’ve had a major lifestyle shift, you may want to reassess your insurance coverage to see if it still meets your needs. If you wish to enhance or decrease your benefit amount, you can apply for that modification and we’ll see what we can do for you based on your age and insurance limits.

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