After a divorce, it’s important to make sure your life insurance policy and beneficiary information are up to date. Typically, spouses name each other as primary beneficiaries, so after a divorce, it’s crucial to update this information. However, depending on the divorce agreement, there may be cases where the former spouse remains a beneficiary for financial support purposes.
As a Canadian, you can also name your children or other dependents as primary beneficiaries. If the beneficiary is a minor, you will need to appoint a trustee to manage the funds until the child is of age.
It’s wise to consult professionals such as a life insurance advisor, estate planning specialist, accountant, or lawyer to make further adjustments to your policy. Considerations include who will pay for the policy, if the coverage is sufficient, and the cash value in the policy.
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Step 3: Turn your focus to your future
Once you’ve sorted out your financial obligations and reviewed your insurance policies, it’s time to look ahead. Consider a policy that insures your ex-spouse, disability and critical illness insurance, and securing your own separate life insurance policy for your dependents.
Don’t be afraid to ask for help
If you need help organizing your finances or exploring new options, consult a professional to ensure you have proper protection for your family.
