Life insurance after divorce

Tricky financial questions can crop up even during the most amicable divorce, and existing life insurance is often something a separating couple will need to put under review.

What’s the best thing to do with your life insurance policy after divorce? There’s no one-size-fits-all solution, but we’ll run through some of the options available here.

What should you do if you have separate life insurance policies?

Having two individual life insurance policies should make things a little simpler in the event of a divorce. However, you should check to make sure the policies still provide the cover you require under your changed circumstances. You might also want to change the person who is legally entitled to benefit if it’s currently your ex-partner.

What should you do with joint life insurance after divorce?

If you have joint life insurance with us, it may be possible to separate it into two policies. However, this option isn’t available with every insurance company. If this is the case with your life insurance provider, there could be two routes you could take:

One of you takes over the policy while the second person arranges a new policy for themselves if they still need life insurance. You should check your policy booklet to see whether this is an option.

You cancel the policy and take out a new single life policy suited to your changed situation. However, it’s worth bearing in mind that there are potential downsides to doing this. Premiums are likely to be higher as you’ll now be older than when you took out the original policy, and you may need to go through health checks before a new policy is agreed. You might want to check your new policy is in place before cancelling any existing cover.

Any new policy will be subject to the terms and conditions available to you at the time you make the change.

What should you do if you have mortgage life insurance?

If your life insurance provides cover to help protect a mortgage, then the person who gets the house could take over the existing life insurance policy or take out a new one. In either case, they may want to re-look at the existing cover to make sure it still provides enough to pay off the mortgage if they pass away during the length of the policy. It is also a good time to review who is legally entitled to benefit from the policy to make sure the mortgage is repaid in the event of a claim.

Don’t forget to update your will

While reassessing your life insurance after divorce, it’s also worth taking the opportunity to update your will. If you haven’t made a will at all, your money and possessions will be passed on according to the rules of intestacy, which may not reflect your wishes.

Find out more about writing your will

Changing your life insurance policy with us

As mentioned above, we offer ‘joint life policy separation’, which means that if a couple divorces or dissolve their civil partnership, we may be able to cancel their existing joint policy and start a new single life policy for each life insured. For full terms and conditions, please see your policy booklet. 

Find out more about our life cover policies.