BUSINESS NEWS - A divorce may end amicably for some couples and for others it could be arduous. Through the legal implication, fees, and adapting to a new situation it is easy to forget about how a divorce can affect your life cover. Here is what you need to consider about your life cover when getting a divorce.
Update your beneficiaries
Keeping your life cover up to date ensures that your beneficiaries are protected financially. A divorce means you will have to consider updating your life cover by removing your spouse.
“According to Stats SA, 4 out of 10 marriages end in divorce before they hit their 10 year anniversary. Not only does this means that the life you have built with your partner changes drastically. Most couples tend to have a Will in place or life cover to protect their spouse financially when they are no longer around to do so. This will change when you get divorced,” says CEO of MiWayLife Craig Baker.
“Removing your spouse from your will or Life insurance does not necessarily mean that they will be removed from your life cover. Remember to call your insurer to add the changes to your life cover to get everything on track.”
There is no limitation to when you can update your policy, but it's advisable to do this as soon as possible.
Upgrading your life insurance policy
Not only is a divorce emotionally taxing on everyone involved, but it also means that you will have to adapt your finances to the new situations. The same goes for your life insurance policy. People who are coming from a two-income household will have to consider how to adapt to a single income household.
“Check your life cover to see if your cover is adequate to cover you and your loved one's financial needs. One phone call to your insurer will help you increase the cover amount should you feel it is not adequate,” says Baker.
Change your debit orders
Most couples split expenses between themselves. in the light of a divorce, this means that your financial portfolios will have to adapt accordingly. This means it's time to review your debit orders and shared accounts to ensure that these are split accordingly and whatever debts need to be paid off are paid by the right party.
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