Divorce can be a turbulent time even for the best of us. A lot of big decisions need to be made during a stressful time. It’s important to stay informed about what happens to a Smart Life insurance policy during a divorce.
Of course, there are plenty of things to sort out, like what happens to property or children. Yet, there are a few ways that divorce can have an effect on your life insurance policy. Often these can slip through the cracks so it's important to be aware of what you might need to change.
So, how could divorce affect my life insurance?
A life insurance policy is something you may have taken out to help protect your family from a tragedy. If your family unit was to break down this could change your priorities. The people that you want to protect could change. When it comes to setting up a life insurance policy you have to set up a beneficiary. This is the person you nominate to receive your chosen benefit amount.
This is the main way in which divorce will affect your life insurance policy. It could be a case that your life insurance benefit is distributed against your wishes. So it is vital to notify us of any changes that you want to make.
What happens to my joint life insurance policy in a divorce?
Unfortunately, a joint life insurance policy cannot be divided. A joint policy is a common option for some couples. It can be an affordable way to make sure that they are protected. So it is unfortunate that there is generally very little flexibility when it comes to these policies.
In this situation, there are two options that you’ve got. The couple either cancels the policy or allows one partner to take over the policy.
Is it easy to make changes to the policy?
All our Smart Life Insurance policies are flexible and you can apply to make changes at any stage. Whether it’s something to do with your beneficiary or how much you want your benefit to payout, it's straightforward. When it comes to an existing Smart Insurance policy, it's a case of getting in contact with our UK based call centre. From there you can apply to make the changes you would like to make.
You should note that any changes that you might want to make may not be accepted and are subject to an application process. Your premiums could change should you make any changes to the benefit amount.
How much does it cost to make changes to my policy?
With Smart life insurance, it doesn’t cost anything extra to make changes to your policy. As we’ve mentioned above any changes to the policy details, such as the benefit amount, could result in a change to the premium. There are no guarantees the changes that can be made but the application itself is free of charge.
What other things should you be aware of?
Another important thing to consider is your Will. When it comes to a non-legal separation this can be vital. A Will is often made with the idea of providing for your significant and any kids you might have some kind of safety net. When the situation within the family changes, your priorities might change with this too.
It is important that if you are seeking to make changes to your will that you get the right legal advice. If you have a straightforward list of requests you can avail of our free will kit worth £100. Should you choose to get insured with Smart you will get this as a completely free benefit.
At Smart, we are here to help
Life can present you with some ups and downs. It’s important to know that we can help you out with any questions in relation to life insurance. Our UK based call centre is on hand to help you make any changes that you might need.