Life Insurance and Life Events
What happens to life insurance in a divorce?
In a divorce, life insurance policies may need to be divided or changed. The divorce decree may require one spouse to maintain life insurance for the benefit of the other spouse or children. Beneficiary designations should be updated after a divorce.
Key Points
- Divorce decree: may require maintaining life insurance for spouse or children
- Beneficiary designations: update after divorce
- Cash value: may be considered marital property
- Policy ownership: may need to be transferred
- An independent agent can help you review and update life insurance after a divorce