Check your life insurance policies to make sure you have the correct people designated as your beneficiaries.
In divorce cases, the decree typically requires that a spouse who has a child support obligation to carry a life insurance policy until the children reach majority age. But after that time, it is probably not a good idea to keep your former spouse as a beneficiary. People, however, can forget and leave a former spouse on the policy. It happens all the time.
Investment firms are good at reminding you to check your beneficiary designations on a yearly basis. The life insurance companies? Not so much. Especially on older policies.
The life insurance companies and life insurance companies have to strictly follow what you wrote and what they have on file. The fact that circumstances – such as divorce – have changed matters from when you first completed the form makes no difference to them. There are many cases where a former spouse intends that an ex gets money from a life insurance policy.
Be prudent. Check your documents.
