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Yes you can apply for life insurance at any point during the divorce process, and there’s nothing about your situation that should prevent you from getting cover in place. Insurers base their decisions on factors like your age, health, and lifestyle; your marital status has no bearing on whether your application is accepted or declined.
It’s worth thinking about what you actually need cover for at this stage of your life. If you have dependent children, a life insurance policy gives you the reassurance that they would be financially supported if something happened to you regardless of any arrangements made between you and your ex-partner. If you’re taking on a mortgage in your sole name as part of the settlement, a policy tied to that liability is well worth considering. And if you’re paying or receiving maintenance, life insurance can help ensure those payments wouldn’t simply stop in the event of a death.
One thing to be aware of is that the cost of a new policy will depend on your age and health at the time of application. This means that if your existing joint policy was taken out several years ago when you were younger, a replacement policy may come at a higher premium. This isn’t a reason to avoid taking out cover quite the opposite but it does reinforce why acting sooner rather than later tends to work in your favour.
If you’re unsure what type of policy is right for your circumstances whether that’s level term, decreasing term, or something else entirely an adviser can walk you through the options without any obligation or fees.
Divorce does not automatically cancel or change a life insurance policy. Your existing cover will continue as normal unless you take steps to amend it. However, it’s important to check who is listed as your nominated beneficiary — it’s surprisingly common for an ex-spouse to remain named on a policy simply because no one thought to update it at the time.
Joint life insurance policies can be a little more complex. Some providers will allow a joint policy to be separated into two individual policies, meaning both parties retain cover. Others won’t offer this option, which may mean the policy needs to be cancelled and new separate arrangements put in place. It’s worth finding out which applies to you before making any decisions.
Reviewing your protection arrangements should form part of any broader financial settlement. There are three practical things worth doing: first, check who is named as beneficiary on any existing policies and update this if necessary. Second, consider whether the level of cover you have still makes sense given your changed financial responsibilities what was right when you took out the policy may no longer be adequate or appropriate. Third, if your current policy is a joint policy tied to a mortgage you no longer share, you may need to restructure your cover entirely once the property arrangements are resolved.
We recommend speaking to a qualified protection adviser before making any changes to an existing policy, as cancelling cover before a new policy is in place could leave you unprotected.
At Buckingham Mortgage Group, we’re a specialist protection broker with access to several trusted providers, which means we can find cover that suits your individual circumstances. Our advice is completely fee-free, you’ll never be charged for the guidance we provide. We understand this is a sensitive and often difficult time, and our advisers are here to make things as straightforward as possible for you.
Related Resources:
Life Insurance Checklist After Divorce