A new chapter needs new paperwork
Divorce untangles a shared life, and the insurance often gets left until last. Yet the policies you set up together may no longer reflect what you want. Your ex could still be the person who would receive your payout. Or your cover might be tied to a mortgage on a home you no longer own.
Starting again is a chance to build cover around your life now: your home, your children and your own future. It is worth doing once the financial settlement is clear. Until then, keep any existing cover in place, as cancelling early could leave you or your children unprotected.
What to do with a joint policy
A joint life policy covers two people and pays once. You cannot normally divide it into two policies. The options are to keep it running, perhaps as part of the settlement, cancel it, or replace it with two single policies.
Some policies include a separation option that lets each of you take out single cover without new medical questions, within limits and time frames. Check your policy documents or ask us to look before you cancel anything. The option usually has to be used within a set time after the divorce or separation, so it pays to check early.
- Do not cancel old cover until new cover is in place
- Check whether your policy has a separation option
- Agree in writing who pays any policy you keep together
- Ask your solicitor whether the settlement mentions life cover
Trusts, wills and death-in-service
If a policy is in trust, the beneficiaries and trustees stay as they are unless you change them. Divorce does not update them for you. Look at who is named and decide whether that is still right. You may want your children as beneficiaries instead, with trustees you trust to manage the money for them.
In England and Wales, a divorce generally means your former spouse is treated as having died for the purposes of your will, but the rest of the will can still apply in ways you did not expect. Making a new will is the clearest fix. Remember to update nomination forms for any pension or death-in-service benefit at work too.
Protecting maintenance and your children
If your ex-partner pays maintenance for the children, those payments would stop if they died. A life policy on their life can cover that gap. You may need their agreement and details of their health to apply, and the court or your solicitor may arrange this as part of the settlement.
If you are now a single parent, your own cover matters more. Think about who would care for your children and how they would afford it, then set up a trust so the money reaches them. If your ex-partner is the other parent, you may still choose them as a guardian, and the trust can keep the money under separate control.
Starting your own cover
New cover is priced on your age and health when you apply. If your health has changed since you took out the joint policy, a single policy may cost more or come with different terms. That is one more reason to keep the old cover running until a new one is agreed and in force.
Divorce often changes how much cover you need. You may have a smaller mortgage, a new home in your own name or the children with you during the week. Work from your new outgoings rather than the old household budget, and size the cover to fit them.
If you might live with a new partner one day, single cover keeps things flexible. You can add a policy together later, instead of tying your finances up in another joint plan straight away. We can set up single cover in your name whenever you are ready.
How Hi Tomorrow helps after a divorce
We know this can be a difficult time, so we keep the process calm and practical. We look at the policies you hold, explain your options for any joint cover and compare single policies from the insurers on our panel.
We help with new trusts and point out where your will or work benefits may need updating. If a settlement requires life cover to protect maintenance, we can help arrange a policy that fits the terms your solicitor gives us.