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 of their needs in the event that you are no longer here. Keeping their needs in mind, it may be time to increase the death benefit amount. Based on the age of the children and the custody conditions, you will be able to determine with your insurance provider how much the amount should increase. It is important to do this as soon as possible. As your age increases, so do the rates of the insurance policy and at some point, you may not be able to increase the amount.
Decreasing your death benefit
If there were no children involved in the relationship and your debt load decreased when you divorced from your spouse then this is the time to decrease the death benefit. A large amount is necessary for an individual who has a lot of debt they do not want to will on their beneficiary or if the individual has young children who would need financial assistance, in the event that they were no longer here. If these factors are not present, then it is not necessary to be paying such high premiums and monthly costs for life insurance.