Life insurance may not be at the forefront of your thoughts during a divorce. However, a divorce can significantly impact your life insurance in several ways. Decisions about policy ownership, premium payment responsibilities, and the policy’s influence on other matters like child support can be as crucial as deciding who gets the house or how to split bank accounts.
Life Insurance and Support Obligations After Divorce
Some divorce agreements may require one or both spouses to maintain life insurance for the children’s benefit. This is especially true if one parent depends on the other for financial support for the children. Life insurance policies covering child support until all children reach 18 may be necessary. Your divorce settlement will dictate how your life insurance policy is divided.
Life Insurance and Beneficiaries After Divorce
In Florida, the Automatic Revocation Statute automatically removes an ex-spouse from a life insurance policy upon divorce. However, this revocation does not apply to every policy. You need to consider whether you should change the beneficiary of your life insurance policy. If the court does not mandate you to name your spouse as a beneficiary, you might choose to name a minor child as the beneficiary.
Partner With Insurance Warehouses of America in Orlando, FL
Since 1999, we have been assisting individuals and families with their insurance needs. Navigating life insurance issues during a divorce can be challenging. At Insurance Warehouses of America in Orlando, FL, we can provide you with suitable insurance that meets your needs and inform you about how a divorce may affect your policy. Contact us today for more information.
