Should I update life insurance after divorce?

Question

At the moment, I bought life insurance years ago and my family, income, and financial responsibilities have changed since then. I need clarity on what should be reviewed instead of assuming the old policy still fits. Right now, the coverage could affect roughly $72,000 or more for my family, so I am paying close attention to exclusions, beneficiary rules, and what could cause the benefit to be reduced.

Soradin · Accepted Answer

Ownership, beneficiary rights, court orders, and support obligations should be reviewed promptly. For this insurance planning decision, life insurance should be reviewed after marriage, divorce, births, deaths, job changes, debt changes, business changes, and major estate planning updates. The actual contract and current values are the right basis for judging the coverage, not on a sales summary by itself. Start with the written policy together with the most recent illustration, then ask a licensed insurance professional to identify in writing the guarantees, exclusions, riders, and surrender limits that matter.

Should I update life insurance after divorce?

Soradin

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