Keeping Your Policy in Line with Changes in Your Life
When you get married you make long-term plans that often includes life insurance naming your partner the recipient in the event of your death. A divorce may certainly change your decision. In addition, your insurance needs may change if you have children, and yet again once they are fully grown and out on their own.
You have a lot to consider with all of the financial and emotional difficulties in your life, and so you made need the help of an agent when determining which Connecticut life insurance policy you choose. An agent can help with any special concConnecticuty have about your coverage. In the case of a divorce, plans for any changes should begin even before your divorce becomes final.
Issues to consider
You may wish to revise the selection of life insurance beneficiaries when any change in marital status comes about. If you do have children, your insurance concerns should perhaps center on whether you are granted custody. Often in marriages one partner will maintain insurance for the entire family, but the breakup of a marriage can obviously have serious insurance consequences for the other spouse.
Considerations for the noncustodial parent
You still have obligations to fulfill and will likely want to ensure that your children are protected financially even in cases where you don’t have custody. In addition, you may have responsibilities to your former partner and could benefit by paying for a new policy on your life for the custodial parent. This will allow you to keep any policies you currently have and protect your children’s future at the same time. (The policy can be given to your former partner free from gift tax if given as part of the divorce agreement).
Change in beneficiaries at divorce
To make changes to the beneficiary on a life insurance policy simply call up the insurer and request the appropriate paperwork. You can designate any person or entity to be the beneficiary, although some states require that the beneficiary have an insurable interest in your life.
If a court has ordered, for instance, that you must continue an existing policy with your former spouse as beneficiary, you won’t be able to change it. For questions pertaining to this important life event speak to an agent about your Connecticut life insurance policy today.