How to Update Your Life Insurance After a Divorce

| December 15, 2015
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Life changes quickly. If you are facing those life changes right now, you may be wondering what your next step forward is. Perhaps you've divorced. This is one of the most complex changes in daily life and it can be very hard for individuals to overcome both financially and emotionally. Yet, this is also the time when you need to take a closer look at your financials and make changes as they fit. A good place to start is with your life insurance.

After a divorce, you will need to reassess many of your financials. This includes your bank accounts, credit cards and even your mortgage. Take a look at your life insurance policy. Does it need to be updated at this time?

  • Change your beneficiary. A first step to take is to remove your ex from your policy as a beneficiary, if that’s what you wish to do. It may be a better idea to list a child, sibling or parent as the beneficiary, or another person who receives the payout if you die.

  • How much coverage do you need now? Depending on when you are divorcing in your life, you may not need as much coverage as you previously had. You may have fewer debts. If you no longer have dependents, you may be able to reduce your coverage in this area as well. Take the time to determine what specific risks are present for your loved ones, those who depend on you.

If you do not have life insurance, now may be the best time to obtain it. This is especially true if you have family or loved ones who are depending on your income going forward. If you are the sole breadwinner in your home, you may need to have a higher level of coverage to meet your family's needs should something happen to you.

Now is the time to reexamine your life insurance policy. Do you need to make changes? Could making those changes help improve the amount of protection your loved ones have? Talk to your insurance agent about the options available to you. It may be more affordable than you think to have a quality insurance plan that better meets your needs.

Need assistance to update your policy? Call Safe Insurance Group at (305) 264-8964 for more information on Coral Gables life insurance.

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