Getting divorced is never an easy time and there are so many things that need to be sorted out that adjusting your life insurance policy will normally be pushed to the side or completely forgotten about. However, it is very important that whether or not you previously had life insurance before, you spend time to decide on a new life insurance plan that suits you financially, especially with lifestyle and family support changes.
There a few things that will need to be amended within your life cover and within this blog the cheapest life insurance will go through some of those things.
Life insurance when you are married may well be assigned for the mortgage should something happen to you and it may include financial payouts for your partner or your children.
When you divorce, you are most likely going to be moving home, which could mean you need more or less cover for your mortgage and most importantly, that any payout on a policy goes to someone else or perhaps sits in trust for your children alone.
While this is not an easy decision to make it is an important one and it is something you should do to ensure there are no uncertainties.
A good way to decide how to go about things is quite simply once you first move. As soon as your obligation to your original mortgage has changed, then it’s time to get cover for your new mortgage.
Thereafter, if you have previously had a life insurance policy in trust, you can set about changing that and any will you may have previously created.
It’s important to get it done if you want to be certain that you are not only covered sufficiently for anything that may happen to you but also so you are not paying additional premiums that you do not need to be paying.
Some people also take the opportunity to purchase critical illness cover when they become single again to help cover them for serious illness but also to offer some financial security should they be diagnosed with a critical illness but recover. For example, if your insurer concludes that a heart attack is a critical illness then your cover will payout should you suffer one. If you require time off work for example, your critical illness cover can provide you with a breather when it comes to the bills, hopefully giving you more time to focus on getting better.
Whatever stage of divorce you may be in, try to resolve your life insurance requirements if you can and check that you are covered for the sums that can pay off debts and your mortgage should the worst happen.