Divorce causes a lot of disruptions in a family's situation, leading to changes in residency and custody. One effect you might not immediately consider is the impact divorce has on your existing life insurance. Below is some information you'll need to address the situation change. 

Changing Your Beneficiary

The life insurance beneficiary is the person you delegate to receive a benefit after you pass away. Depending on the policy, the beneficiary can be revocable (or changeable by you at will) or irrevocable (i.e., requires the current beneficiary's signed consent). To change beneficiaries, you must submit a form with your carrier and include the signed consent, if that is necessary. 

It is not enough simply to change your will; the policy is often paid out before the will ever makes its way through the court system. On the form you submit, you can, for example, designate your children as new beneficiaries. Note that if you owe alimony or child support to your ex, a judge may order you to maintain your ex as the beneficiary to ensure their financial recompense in case you should pass away. 

Choosing Multiple Beneficiaries

You can split the benefit between multiple beneficiaries however you like. Simply include the name, relationship, and contact info for each assignee and the percentage of the total payout amount. That way, you can assign a portion to each of your kids, your ex, an aging parent, or another beneficiary independently. 

If you do not have kids, you can designate anyone you like as your beneficiary (although some carriers limit the total number). For instance, you could leave it to your parents, a friend, or another extended family member. You can even assign as your beneficiary your business or your favorite charity or non-profit organization.

If your life insurance needs have changed after a divorce, contact Michael E Glick insurance in Boerne, TX for assistance. They have served Kendall County and the surrounding areas for more than 25 years. In that time, they have built a reputation for friendly, knowledgeable service and have helped countless clients protect themselves with life, business, property, and auto insurance. Learn more about them by visiting their website or call (830) 816-9488 to request a life insurance quote.