Deciding what to do about life insurance after a divorce can be a challenge. Try not to let emotions guide your actions and consider the overall impact of any moves you make.
The primary purpose of life insurance is to provide for those who are dependent on you in the event of your untimely death. Often, that means your policy will benefit a spouse and children, if you have any.
After a divorce, it is wise to reassess your life insurance needs. Take a close look at those around you and think about how they would be impacted financially in your absence. If you have children, do your best to estimate how much they would need for their well-being until they can care for themselves. Run the numbers on your own or use an online life insurance needs estimator.
Be sure to seek guidance from an attorney before buying or changing life insurance coverage, so that you can be sure to act within the guidelines of your divorce agreement. Be sure to seek guidance from an attorney before buying or changing life insurance coverage, so that you can be sure to act within the guidelines of your divorce agreement. For instance, you may be required to carry a specific level of coverage until your children reach a certain age.
Proceed with caution before removing your former spouse as beneficiary — especially if you have children together. Doing so may inadvertently result in your children not getting the financial assistance they deserve. Additionally, your divorce decree may require you to keep them as a beneficiary for a period of time.
Divorce can be a very difficult transition in life. If you do a little research and take time to act in the interests of those you love, it does not have to get the best of you.
Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
TIAA-CREF Life Insurance Company does not render legal or tax advice. You are encouraged to consult with your legal advisor to determine what best suits your individual needs and circumstances.
Exclusions, restrictions, limitations, and reductions in benefits will, in certain situations, apply to your policy. For full details, including costs, call us at 877 276- 9429. Please note that the issuer has the right to contest the policy for misrepresentation by the applicant.
Insurance products issued by TIAA-CREF Life Insurance Co. (TIAA-CREF Life), New York, NY.
We can help you be prepared for emergencies with life insurance.