Life Insurance Claim Articles

Life Insurance Policies And How They Can Be Affected By Divorce

By Jeffrey L. Greyber, Esq.

I have witnessed an issue with several clients, and so I would like to possibly remedy, by discussing life insurance policies and how they can be affected by divorce. It is quite common that a given life insurance policy will indicate a spouse to be the primary or sole beneficiary of that said life insurance policy. So, in the case of divorce, is the ex-spouse’s beneficiary status divestible? Is it automatic? The answer is, sometimes yes and sometimes no.

In the case of many states, divorce will automatically divest the ex-spouse as beneficiary. This is the case of many states, not all. When a divorce occurs, it is important to know who your beneficiaries will now be. This is crucial to avoid an unpleasant situation down the road, attempting to sort with state administrators and executives, on who will get what from your life insurance policy.

If you would prefer that your ex-spouse remain beneficiary or in fact be removed as beneficiary to your life insurance policy, you need to write to your insurance company and make your decision perfectly clear. As a practical pointer, it is important to know the laws and regulations pertinent to the jurisdiction in which you reside. Certain statues could take this decision out of your hands if no action is made in due time.

Always make sure to be proactive, and take the time to be upfront and update your insurance company/insurance policy.

Life Insurance Claim Articles