Unless you yourself take specific action to change these policies, a divorce or a break-up with your spouse or partner should not directly affect your life insurance policies. Even so, it is potentially a good time for you to review your life insurance needs, regardless of the fact, that your policies will not change, unless [...]
Archive for the ‘Life Insurance & Divorce’ Category.
It is quite understandable that after you become divorced, you no longer want your former spouse to be the beneficiary of your life insurance policy. Once the divorce is final, you should immediately choose a new beneficiary and change your policy. The first choice for selecting a beneficiary would obviously be your children. If your [...]
There are a few things that can help determine whether or not a life insurance policy counts as community property when a divorce is filed. First of all, if you live in a community property state, then it may be considered community property. Also, if you bought the life insurance while you were married and [...]
Would Obtaining An Irrevocable Life Insurance Trust Be The Right Choice For Me, Following My Divorce?
An irrevocable life insurance trust (ILIT) is a smart choice for any individual that fears the heirs of his or her estate may be incapable, by virtue of age or otherwise, of handling the benefit responsibly. An ILIT allows you to maintain complete control of how and when your death benefits are disbursed even beyond [...]
After a divorce, an adjustment to the life insurance death benefit may be in order. This amount may need to increase or decrease depending on a number of factors. Increasing your death benefit This may be necessary, if you have any children. You may not be able to rely on your ex-spouse to take care [...]
Spouses are often included on life insurance as a rider. This means that rather than having their own policy, they are added to an existing policy as a provision. After divorce, many decide to cancel this provision from their policy. This provision should be allowed to lapse. Generally, canceling this provision will require providing your [...]