Couple signing

Life Insurance and divorce

Divorce and separation impacts a number of people and financially this may affect how you want to distribute your assets from the time you were together.

Things to consider

  • The type of policy you have may play a key part in how your Life Insurance policy is settled, for example if you each have a single Life Insurance policy, then it may be easier to settle than a joint policy, as each policyholder may already have the amount of cover they need. If however you have a joint policy then you need to decide if you want to continue with the joint policy or cancel that policy and start a new single policy each.
  • If the policy was written in Trust, the policyholder can select who the Trustees or beneficiaries are. If there is any disagreement between the two parties involved then it’s worth having the Trustees and beneficiaries confirmed in writing during the divorce settlement, or have a copy of your trust so that the policyholder cannot amend this afterwards. Only single policies can be written in Trust, joint policies are not offered in Trust at Beagle Street

Making a Life Insurance claim after divorce

A Life Insurance policy cannot be split in a Will or any other legal document, apart from a policy that has been written in Trust. If you are named as the beneficiary then you are legally entitled to the pay-out, or if you are the surviving policyholder from a joint policy.

If your (ex) partner has a policy and dies, then you are only entitled to the pay-out if you are named as the beneficiary. If you were a beneficiary but were removed before the death then it’s worth seeking legal advice. If your ex-partner has a single Life Insurance policy & dies before your divorce is complete then you are not entitled to the pay-out.

Do I need to let Beagle Street know if I get divorced?

No, you do not need to inform us if you are getting divorced but if you wish to discuss your policy because of this, get in touch.

Do I need my partners consent to cancel a joint policy?

No, you don’t need consent from your partner in order to cancel the policy.

Setting up a new policy

If you are currently going through a separation or divorce and this has affected the responsibilities you have, then the amount of cover you need may need to be reviewed.
You can use our Life Insurance calculator for a better idea of what you need.