Divorces are painful. They can cause emotional harm to all participants. For example, imagine what might happen if a current spouse and an ex-spouse file competing claims for life insurance on a decedent.
Divorce related life insurance conflicts often end up in the courts. Such proceedings can be an emotionally charged experience for all involved.
Is that what you would want for your estate? Let’s say you have a policy worth $1,000,000. How much of that could be lost in legal fees as competing parties fight each other over who should receive the death benefit?
It may be surprising, but life insurance is often overlooked in divorce proceedings. This sort of oversight sets up the potential for future conflicts.
It forces the courts to made decisions on behalf of the decedent… something that no life insurance policy owner wants.
But avoiding this issue is relatively easy. Be sure your life insurance is discussed during your divorce and be sure it is properly updated.
As difficult as it may be, talking with your Insurance professional about your divorce is important. They’ll be really understanding. They’ll ask you the necessary questions to help you decide how best to handle whatever changes you need to make to your policy. They’ll offer you great advice that you can count on to be sure your estate is protected and that your wishes are followed if something should happen to you.