Life Insurance after Divorce - PinnacleQuote

Life Insurance after Divorce

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If you’re like me, you don’t want to think about the possibility of your death. But if you are divorced and took a hit on your personal finances as part of the settlement agreement, it’s time to start thinking about life insurance.

After divorce, most people have less money than they did before their marriage because they now have two households that need to be maintained instead of one. That means many ex-spouses can’t afford adequate coverage for themselves or their children without some assistance from an outside source.

And since life insurance is not cheap, this often becomes a point of contention during negotiations between divorcing parties who may be at odds with each other for years afterward anyway!

What Happens To Life Insurance When You Divorce

What happens to Life Insurance After Divorce? is an often-overlooked element of divorce, yet one of the most important.  According to statistics today in 2018, about 40 to 50% of marriages in the U.S. end in divorce.  A pretty high rate of divorce, if you ask me.   

Although, we never imagine when we get married that we would be divorcing the love of our life.   Sadly, it happens and usually, the last piece of the puzzle in divorce is ~ life insurance.  

Life Insurance usually gets forgotten about!!!

As a matter of fact, there are a few factors to consider when it comes to divorce settlements.

Life Insurance after Divorce
  • Custody
  • Assets
  • Child Support
  • Alimony/Maintenance
  • Life Insurance

Take the emotion out of it!!!

Life Insurance Cash Value in Divorce

When children are in the mix, the end result will always be the same.  

What is in the best interest of the children?  From experience, it is best to make the divorce process like a business transaction. 

With this in mind, take all the emotion out of it.  In order to have an amicable, peaceful settlement, this is a must!  (Trust me when I say, I know how you would rather see your Ex stuck in a ditch.  LOL)

Of course, when young children are involved, I know how challenging this could be.  Therefore, write everything down you want and what you are able to live within your divorce and for years to come. 

 Think of this is as an investment.  Be clear about what is truly important to you.  Honestly, there has to be a give and take with your soon to be ex-spouse.  To emphasize, be very open to compromise and remember who is watching you through this divorce ~ Your Kids!


Many clients ask, Can you Keep Life Insurance After Divorce?

In the case that you have a joint life insurance policy, this policy cannot be divided.  In regards to divorce and life insurance,  one of you can decide to take over the policy as a single policy or just cancel it altogether.

Money-back in your pocket! 

If you are unsure what to do,  compare the cost of taking over the policy you already have in place and a new single policy.  Your independent agent will be able to help you with decision making. 

It is always best to ask for guidance because their goal is not only to provide you with the best choice for your children if there is a payout.. but if your independent agent is doing their job correctly,  they will be saving you MONEY!  

Putting that money back in your pocket where it belongs! 

Divorce and Life Insurance Beneficiary


This is important!  Divorce is messy as it is.  Could you imagine forgetting to change the beneficiary after a divorce? Let’s say, for instance, you remarry, then you die some years later.  

If your beneficiary on your policy was never changed, Your Ex will inherit the payout, not your current Spouse. If there are no children involved especially, you want to make sure all of your paperwork is up- to -date!

Is Life Insurance An Asset In Divorce


When it comes to your term life policy they will consider this to be separate property. This does not matter when the policy was obtained.  Now with a whole life policy, this will be considered marital property.

The courts will tell you the cash payout/surrender value will be subject to division between the two parties. 

Can You Keep Life Insurance On A Divorced Spouse


Simple answer, NO.  In order to take a policy out on someone you will need the following:

  • consent
  • prove insurable interest
  • medical exam on the person to be insured

Life Insurance For Divorced Spouse


Will you receive alimony and/or child support after your divorce?  You will want to protect that income. After a divorce, and your Ex dies, this money dies with him.

With that said, many clients purchase a life insurance policy on their ex. You have two choices,  buy a brand-new policy or keep your current policy as long as the life insurance policy was purchased during your marriage.  

Remember, you want a policy to be enough that it could replace the money you receive in those alimony/child support payments.*

*Speak with your Independent Agent at PinnacleQuote, Owner/Agent ~ Danny Ray.   He has 25+ years of experience.  He will guide you throughout the entire process and he is an expert in this field.

Can You Change Your Life Insurance Beneficiary During A Divorce

Life insurance spouse BENEFICIARY rules ~ LEGALITIES 

Let’s face it, at this point… You think your Ex is an Idiot… 

My Lisamarie tip #1 to you is….

I suggest paying these premiums yourself.  To explain, this ensures that the premiums are paid.  And that your Ex does not allow the policy to lapse due to neglect!  Let’s face it, you divorced for a reason!

Depending on an Ex is like brushing your teeth while eating Oreo cookies.  It just doesn’t make sense.   It will be more of a headache dealing with non-payment of premiums and a lapse of policy that the insurance company would end up terminating.  

You already had years of headaches with your Ex-Spouse. Don’t add any more aggravation!

Lisamarie Tip #2:  Always consult your attorney regarding legalities. 

Last-minute life insurance tips… Make sure you are the owner of the policy!  This gives you total control of the policy. 

In fact, you will be able to change the mode of payment, control over the face value and be in control of changing the beneficiary/beneficiaries. 

With that being said,  for this to be a smooth, easy process that your Ex will not give you a difficult time about, it is ideal for you to be:

  • The Payor of policy
  • Beneficiary
  • Owner

*Please note, if you decide to keep an existing policy, I urge you to consult with your attorney.  There will be waivers/forms to sign in this agreement to change ownership. Protect yourself!!!

Life Insurance Divorce Decree


So almost 100% of the time the “breadwinner” of the dissolving marriage ordered by the court to purchase the life insurance policy.  The reason for this is to bridge the gap in the event of the breadwinners’ death.  

Your children and you do not miss a beat, and will not lose out on the following.

  • Child support
  • Alimony
  • Tuition
  • Their home

*This is usually until the children are 18 years of age.

Life Insurance and Divorce Settlements


In divorce situations, both parties should want a life insurance policy in place. In the first place, it protects you, your Ex and most of all your children you have together.  

Important to realize, this is to insure that in the event of a parents death,  the children/beneficiaries are provided for.

Check the state you live in.  There could be different laws in each state…


For instance, in New York State, a court can demand that an existing life insurance policy is kept intact with your soon to be Ex. With you and your minor children remaining as beneficiaries. 

However, the court can not force you to obtain one unless it is part of a stipulation that you and your Ex-agree to.  

*In some cases it can and will be court-ordered.  

That depends on you, the more amicable you and your Ex are, the less the court has to intervene.

Divorce and Life Insurance Beneficiary


Irrevocable Beneficiary  Vs. Revocable Beneficiary * know the difference!

Life Insurance after Divorce

Life Insurance Beneficiary and Divorce

So what about life insurance beneficiary after divorce?  If you are in the process of separating and divorce, your soon to be Ex-spouse who is the owner of the policy does have the rights to change the beneficiary.  

In the event that he/she makes changes, speak to your attorney regarding your rights. 

  • Irrevocable Beneficiary ~   requires the owner to get the consent of the beneficiary to sign off on any policy changes. 
  • Revocable Beneficiary ~  changes can be made by the owner of the policy without the consent of the beneficiary.

What about Alimony Life Insurance  

Your ex-spouse is not permitted to deduct life insurance premiums from an alimony payment. Unless otherwise ordered by a Judge in a court.  

However, if the ex-spouse is making the payments for life policy those premiums may be deducted. It is imperative you inquire with your attorney for clarification. 


Frequently, many clients ask which type of life insurance should I purchase after divorce.  Below, I will give you the break down of Term Life Insurance Vs. Whole Life Insurance

Term Life Insurance ~ Term life insurance is truly the most popular choice for young families/adults to provide coverage for their family. 

You choose the term, either 5, 10, 20 or 30 years, and you also choose the coverage amount. Once the term ends. Coverage ends.  Simple as that.  Of course, you can renew.

In fact, term life is the cheapest affordable life insurance.  Honestly, when deciding on coverage amount, half-million or a million-dollar policy is something to consider when you have small children. 

You want enough coverage to get them out of school and out of the house.

  • High School
  • College
  • Marriage

Whole Life Insurance ~  First, Whole life insurance is a bit pricier.  Secondly, it provides you coverage for your entire life.  Thirdly, it holds a cash value.  (Not as popular as Term.) 

Lastly, whole life is geared more towards elderly clients and for Final Expense and Living benefits life insurance.  


To make things super easy and not have to deal with your Ex Spouse’s nonsense,  You could opt for a no medical exam policy.    All that is required is the application and a lifestyle questionnaire. A few top-rated A+ carriers we like are:

  • Mutual of Omaha
  • Phoenix
  • American National
  • Foresters

Call Us Today To Go Over Your Options 855-380-3300


Certainly, life insurance after divorce can be tricky.  Contact a reputable life insurance attorney before a dispute arises with the beneficiaries.  They will help you with the following:

  • Multiple beneficiaries disputing in the event of policy owner’s death
  • Beneficiary not listed on the policy
  • Change of beneficiary without permission and illegally
  • Surviving spouse and the ex-spouse disputes
  • Children dispute over beneficiary and payout

Can you keep life insurance on a divorced spouse


Don’t wait until the last minute!

In the first place, divorce gets messy.  To put it differently, dealing with an Ex is plain exhausting. Clients forget about Life insurance during a divorce.

Given these points, it creates a lot of anxiety as at the last minute of a divorce settlement.  Clients often call us in a panic because they must have a policy in place before their next court date or settlement.

Consequently, in some cases, the court may mandate you have a policy in place by a certain date.

In conclusion, we urge you to make sure this is a top priority.  At the beginning of your divorce, not at the end.

how to split a life insurance policy in a divorce

It is a great idea to have financial planners to help you during the divorce process. Besides health insurance is important for you and your family, you will have to discuss bank accounts, products, and services regarding permanent life insurance coverage. In addition to premium payment and the death benefit. 

Make a list of everything. Nothing should be left out! Negotiate anything and everything so that way, later on, you will not be in a big mess of confusion!


As a mom of 4 children,  For this reason,  (from a mom standpoint) I highly recommend having life insurance for both parties in place.  As you already know at this point,  it is not about you and your Ex anymore. 

In other words,  it is about your children.  

Important to realize, life insurance ensures what you had envisioned for their future be kept intact.

Truly, it protects you financially.

Occasionally, an Ex-husband / Ex-wife already has a life insurance policy in place through their employment.  From experience,  I recommend you inquire with your attorney.  With this in mind,  insist your Ex purchase an additional policy as part of your divorce settlement.   Reasons are:

  • Loss of employment
  • Becomes disabled
  • Quits employment


When you’re about to get divorced, it’s important that you make sure your life insurance is up-to-date. You don’t want anything left undone at the last minute when all of a sudden everything becomes so much more complicated! Nothing will be worse than having your family find out later on down the line that they were not adequately taken care of because someone didn’t take an extra step and update their policy before getting remarried or changing jobs. We can help with this too – we’ll work with you to make sure that your loved ones are cared for in case something happens while transitioning into new phases of life after divorce. If you need any clarification, please feel free to reach out anytime and our team would be happy to answer any questions that you might have.


Danny Ray is the Owner/Agent of PinnacleQuote Life Insurance Specialists.  We are based out of Jacksonville, Florida. 

Danny Ray Independent Agent
Danny Ray Founder/Independent Agent

When it comes to Life insurance after divorce, Danny makes sure you have all the information you need and will help you make the best choices

Helping one client at a time in the Art of Life Insurance!  Best PRICE, Best CARRIER ~ GUARANTEED!!!

If you have any questions regarding Life Insurance after Divorce or any life insurance concerns, Call PinnacleQuote Life Insurance Specialists at (855) 380- 3300.

For more information on Divorce, alimony insurance: CLICK HERE

Life Insurance After A Divorce

Life Insurance Divorce information

My name is Lisamarie.  I am Danny’s partner. I schedule all of Danny’s phone appointments.  I am available 9-9 pm (est.)  Monday -Friday. In addition, I am on call Saturdays/Sundays for our West Coast Clients.

If you have any questions for me or would like to schedule your life insurance phone appointment, call me directly, (855) 380-3300.  Email me at: I am looking forward to speaking with you!  ~ Lisamarie