Getting Divorced: what happens to life insurance policies

By Compuquotes Team on March 26th, 2008

Going through a divorce is hard enough to deal with. There are lots of things that you have to split up, and lots of things that you have to worry about. One of the things that you want to think about is your insurance policies and what you are going to do with them. When you have insurance as a couple, that insurance has to be dealt with as you file for your divorce and separate your lives from each other.

Life insurance policies are something that are meant to last for your entire lives. Therefore, they are policies that are strong and often hard to figure out. You want to be sure that you put your own good and the good of your ex spouse ahead of any monetary issues that come up.

When you are dealing with your life insurance policies and your divorce, you have several options. You can keep the policy yourself and take your spouse off of it. Or, you can take yourself off of the policy and let your spouse have it. Or, you can cancel the entire policy, which will mean that both of you have to get another policy.

If one of you is going to keep the policy, there are several things that you can look at in order to figure out who. First of all many insurance companies have regulations about who can be taken off of policies and which one of you should be there and which should not. Some will make the primary signer keep the policy and some will be fine with either of you keeping the policy. You should look carefully at who the policy is going to benefit the most. If one of you is now much sicker than you were when you got the policy, it might be hard for that person to get another policy of their own. If one of you is much healthier than the other, you would stand a better chance of getting your own policy, so it might be a good idea to let the other person have the policy.

There might also be the matter of your children to think about with your shared life insurance policies. Remember that if you have children with your spouse, you want to continue to protect them even after your divorce. Life insurance polices are meant to keep your family safe if something happens to you. Remember that they should still do that, even if you aren't married anymore. You need to be sure that no matter what happens with your life insurance when you get divorced, both you and your spouse are covered in some way after the divorce. You should still be thinking about your children and the burden that you want to keep off of them, should something happen to you. Life insurance is the best way to make sure that you can take responsibility for yourself, so when you work through your divorce, make sure that you are also working through that.

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