Divorce is a difficult process, both emotionally and financially. One of the most important things to think about during a divorce is your financial security. This includes making sure that you have enough life insurance in place to protect yourself and your loved ones.
How much life insurance do you need?
Start by calculating how much money your family would need to maintain their current lifestyle if you were no longer around. This is called your “human life value.” There are online calculators that can help you determine this number.
Once you have an idea of how much life insurance you need, the next step is to figure out what type of policy is best for you. There are two main types of life insurance: term life insurance and whole life insurance.
Child and spousal support
If you have minor children, it is important to have enough life insurance to cover child support payments. If you are paying or receiving spousal support, life insurance can help ensure that these payments continue if something happens to you. When creating or updating your life insurance policy, you need to consider how these payments would be affected if you were no longer around.
Make sure your ex is not named as a beneficiary unless that’s what you want
If you have a life insurance policy that names your ex-spouse as the beneficiary, it’s important to update the policy after your divorce is finalized. If you don’t, your ex could still receive the death benefit from the policy even if you don’t want them to.
Review your life insurance needs every few years
It’s important to review your policy periodically to make sure it still meets your needs. If you have any major life changes, such as getting married or having a child, you should update your policy accordingly.
Divorce is a difficult process, but it’s important to take the time to think about your financial security. Life insurance can be a vital part of protecting yourself and your loved ones after a divorce, and that’s why it’s so important to make sure you have the right coverage in place.