When getting a divorce, you might think about things like child custody and who will end up with the family home. You might not be thinking much about your life insurance policy, but these life insurance tips are important to keep in mind when you're going through a divorce.
1. Your Lawyer Needs to Know About It
First of all, make sure that your attorney knows about your life insurance policy. In many cases, a person's life insurance policy is considered to be a part of his or her net worth. For example, if your life insurance policy is a whole life insurance policy that has a cash value, this cash value might be considered as part of your net worth as an individual. Your divorce lawyer will need to know about your life insurance policy so that he or she can help make sure that it's protected in your divorce.
2. You May Want to Change Your Beneficiary
Of course, as a married person, you might have named your husband or wife as the beneficiary of your life insurance policy. If you are no longer married, then you might not want that same person to be the beneficiary of your life insurance policy when you pass away. You may want to change the beneficiary to an adult child, a parent, a sibling, or another trusted family member after your divorce is finalized.
3. You May Want to Buy an Additional Policy
Some people find that they don't need as much life insurance after they get divorced; after all, if you don't have to worry about making sure that another person is taken care of if you pass away, then you might not have to worry about additional life insurance coverage. Others, on the other hand, find that they want to have more coverage. For example, once you are no longer married, you might go back to having just one income rather than two.
This means that money might be tighter for you, and you might have a hard time continuing to put money in savings or continuing to put money toward funeral planning. Additionally, you may no longer be able to rely on a spouse to help with things like covering funeral costs or final expenses. For some people who are recently divorced, buying an additional policy will help them make sure that all of their final expenses are covered when they pass away.
For more information, contact a company like USAlliance today.