If you own the policy and you're not financially supporting your ex-spouse after the divorce, you can likely remove them as your policy's beneficiary. If you're on the hook for alimony or child support, a judge may require you to keep your ex-spouse as a beneficiary so support continues if you were to die.
The insured parties cannot be changed. As long as he wants to continue to pay the policy, there is nothing you can do to cause the policy to be canceled or to have you removed as an insured because you being an insured was an integral part of the underwriting of the policy. I'm sorry!
Individual policies
It is common for both spouses to be insured, although not required. Several types of policies are available, including: Term life insurance: Term life insurance covers a specific period, such as 10, 20, or 30 years. It offers a death benefit if the insured person dies within the term.
You can remove your spouse from your estate planning documents at any time. In some situations, you might be required to provide your soon-to-be-ex-spouse with notice of changes. Talk to a lawyer about whether this unique requirement applies to your situation.
In most states, it is impossible to totally disinherit your spouse in a will. Spouses have a right of election, and can claim a certain fraction of the estate as their elective share, no matter what the will says. In community property states, a surviving spouse owns half of their shared property.
Do I have to name my spouse as beneficiary for 50 percent of my life benefit? No, the Policy is set up to pay the percentage you list for each named beneficiary regardless of whether you have a spouse. Naming your beneficiary is strictly your personal decision.
If you're the policyholder and won't be supporting your ex after the divorce, you might be able to remove them. But if you have to pay alimony or child support, you may have to keep them as a beneficiary. Consult your divorce lawyer to determine if it's possible to remove your ex from your policy.
If you are married or in a common-law relationship of more than two years, your spouse is automatically your beneficiary.
You need a life insurance policy worth 10 to 12 times your annual income. You can use our free term life calculator to find out exactly how much that is. If you're a stay-at-home parent, you need a policy worth $250,000–$400,000.
Removal can typically only occur after the divorce is legally completed. During this period, both spouses must adhere to any court orders regarding insurance coverage to avoid legal issues. Health insurance plans often cover eligible dependents, including children, but a spouse may be removed once the divorce is final.
You can remove a revocable beneficiary from your life insurance and replace them with someone else. All you need to do is request the form from your life insurance company. But, if you named an irrevocable beneficiary, the only way to change them is to complete the form and get their written consent.
If you don't want a divorce but your spouse does, you should consider suggesting counseling or a trial separation. Sometimes, these steps are enough to give you a chance to save the marriage.
But for adults, the process of applying for life insurance will require not only the consent of the insured person but also his or her participation. Additionally, you must be able to prove that you have an insurable interest in the other person's life.
Life insurance policies generally remain in effect during and after divorce, but it's important to review and potentially update them, adjust coverage, and beneficiaries, and consider policies related to child support or alimony.
While some marital assets pass by default to the surviving spouse, some assets pass to the surviving spouse by way of beneficiary designations. There are two types of designations: payable-on-death (POD) designations and transfer-on-death (TOD) designations.
If you already have a revocable trust, you may want to amend your document to remove your spouse as a beneficiary or trustee. If you don't have a trust, then you should consider creating one to hold your assets during the divorce and beyond.
When you die, the beneficiary on your life insurance policy will receive the death benefit. You can name multiple beneficiaries to receive either equal or different portions. In most states, the primary beneficiary will receive the full payout even if they're not your current spouse.
Many plans require that the spouse is the primary beneficiary, unless the spouse gives written consent to an alternative beneficiary. A plan participant should review and possibly change his or her beneficiaries when his or her spouse dies.
Life Insurance Purchased During Marriage in One Party's Name is Community Property in a Divorce. California is a community property state. That means that all property acquired during a marriage is presumed to be community property.
Life insurance steps to take during divorce
Couples often name each other as beneficiaries on financial accounts like retirement plans and life insurance policies. If no children are involved, you can usually call your insurance company and ask them to remove your ex-spouse as a beneficiary.
Ineligible Beneficiaries: Minors: Generally, minors (individuals under the age of 18 or 21, depending on the jurisdiction) cannot be named as direct beneficiaries of a life insurance policy. In such cases, a trust or custodian may be designated to manage the proceeds until the minor reaches the age of majority.
If you're not married you can choose anyone to be your beneficiary. However, if you're married, or are planning to get married, please be aware that by law, your spouse is your default beneficiary, regardless of who you may have been your beneficiary before getting married.