Should I reduce my life insurance death benefit after I’ve gone through a divorce?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Jul 15, 2021
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Determining whether or not you should lower your life insurance death benefit after your divorce can be difficult.
- How much debt do you have? Your life insurance death benefit will help your beneficiaries pay off your debt. After a divorce it is possible that you could have more debt than you had before the divorce, in which case, don’t lower your death benefit.
- Who are your beneficiaries? If you have children as beneficiaries to your policy, then you need to consider their lives and care in your death benefit. As a divorced parent, you cannot count on your other spouse to be able to support your children alone and put them through college. You may actually need MORE coverage as a single parent.
Be sure to take an objective look at your current debt and responsibilities as well as those that could come in your future. Your health, age and weight will all change over the years making it difficult, expensive or even impossible to increase your death benefit; so reducing it now could be a big mistake.