Dealing With Insurance Policies Following Divorce
You need to take care of a lot of things during divorce. While taking care of yourself emotionally is important, it is equally important to pay attention towards the financial aspect of divorce. One important thing that needs your attention during this time is your insurance policy. You might need to change your insurance policies after divorce. Therefore, it is important to know what you need to do.
Why do you need to Change Your Insurance Policies after Divorce?
If you are planning to get a divorce, it is important to think about your financial future. You might get into a serious relationship with someone new and may want to ensure that they are provided for in the event of your death.
In such cases, you might want to enter into a joint policy such as life insurance or endowment policy with them. However, if you want to do so, you need to make sure that all other policies are surrendered or cancelled.
How to Change Your Insurance Policy
When you decide that you need to make certain changes to your insurance policies, make sure that you discuss these changes with your partner. Your partner may have made considerable contributions to these insurance policies and may want to recoup these financial contributions or surrender these policies.
Once you have discussed this issue with your partner, you need to talk to your Insurance Company. Your insurance policy might not have much of a surrender value and you may need to end it. This is often true in case of car insurances, home insurances, and personal injury insurances. However, in the case of a life insurance, you and your soon-to-be ex-partner may agree to surrender the policy.
Surrendering Your Insurance Policy
You might need to surrender or dissolve your policy. It is important to remember that you will need to buy another insurance policy once you surrender your insurance policy otherwise you will not have any policy. Therefore, make sure that you get into the process of securing new insurance policy while you are surrendering your old policy.
In addition, make sure that you are aware of the outcomes of surrendering your policy. You can get to know about the surrender value of your insurance policy through your insurance company. This amount will be in proportion to the amount of money you have paid for the policy and how many years the policy has been active.
If you had taken the policy very recently or just a few years back, you might not receive anything back on it. For that reason, make sure that you check all these facts before you decide to surrender your policy.
Taking Your New Insurance
If you just want to cancel your insurance policy, most insurance companies will be able to do that for you over the phone. However, if you and your partner are joint owners of the policy, you both will need to contact the insurance company and the insurance company may ask both of you to submit a written letter of agreement which will state that you both agree to terminate the policy.
Experts recommend that you and your partner discuss all your options before you decide to cancel the insurance policies. Insurance companies provide various options to policy holders these days. Make sure that you ask your insurance company to explain these options to you in detail.