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The good news is that divorce itself doesn’t automatically send your premiums soaring, but your circumstances may have changed in ways that are worth reviewing.
Divorce, as a legal event, is not a factor that insurers use to assess your premiums. Life insurance is priced based on things like your age, health, lifestyle, and the level of cover you need not your relationship status.
That said, your divorce may trigger changes in your circumstances that do affect what you pay if you apply for a new policy. For example, if you’re now solely responsible for a mortgage or dependent children, you may need a higher level of cover than before.
A larger sum assured will naturally result in a higher premium. Equally, if your financial responsibilities have reduced, you might find that a lower level of cover is more appropriate and more affordable.
Joint policies are where things can get a little more complicated. A joint life insurance policy typically pays out once on the first death and the surviving policyholder receives the benefit. When a marriage ends, many couples want to separate this arrangement entirely.
Some insurers will allow a joint policy to be split into two individual policies, which can sometimes be done without the need for new medical underwriting.
Others may require the joint policy to be cancelled and two new single policies taken out instead. If new policies are needed, your premium will be based on your age and health at the time of application so the sooner you act, the better, particularly if your health has changed since the original policy was taken out.
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