Getting a divorce can result many different changes, but it does not necessarily mean that a husband and wife are no longer under the current life insurance policy of other individual. Life insurance policies do not make automatic changes to the beneficiary of a plan, so it is necessary for you to change the person listed as your beneficiary if you get divorced and no longer want your ex-spouse to receive the funds if you pass away.
Depending on your insurer, it may be necessary to provide proof of the change to your life situation and circumstances before you are able to make changes to your current policy. Some insurers may allow you to make changes on a regular basis without proof of a divorce, but sudden alterations or changing certain types of plans may require additional documentation.
Proof of the change to your life circumstances can take the form of a copy of the documentation after you leave the court.
Keeping the Current Beneficiary
Just because you are no longer married, it does not mean you are required to change the beneficiary on your plan. Insurers allow you to name any individual or organization as your beneficiary. You can also name more than one person with a set percentage of the amount.
If you determine that you want to maintain coverage and keep your ex-spouse as your primary beneficiary, then you do not need to make any changes or you may want to focus on altering the percentage if you have more than one beneficiary.
An ex-spouse is not automatically removed from your life insurance plan, so making any changes will require you to contact your insurer. Contact us to talk to an independent agent for more information.