When you are going through a divorce, changing your life insurance beneficiary may not be a top priority. Getting divorced can mean dealing with custody arrangements, negotiating over assets, and determining child support. You may even be moving from your family home. It is only natural that individuals simply forget about their life insurance during this tumultuous time in their lives. However, divorce may directly impact life insurance claims. Forgetting to update your life insurance beneficiary after divorce may leave your ex-spouse with all the death benefit upon your passing.
Federal and State Laws Regarding Divorce and Life Insurance Claims
Federal and state laws both deal with this issue. In some states, an ex-spouse will automatically be revoked as the beneficiary upon divorce. However, in Louisiana, there is no such law. Under federal law, there is also no automatic change of beneficiaries. The Employee Retirement Income Security Act of 1974 (ERISA), for example, recognizes the last-named beneficiary on a life insurance policy, whether a divorce took place or not.
Your life insurance benefits in Louisiana will automatically go to the named beneficiary upon your passing. Thus, you will want to make sure that the death benefit goes to a beneficiary of your choosing. Hence, acting quickly can be crucial after a divorce. The laws concerning divorce and life insurance are complex. Contacting an experienced New Orleans life insurance attorney can grant you peace of mind. We will ensure your loved ones’ security.
How Do I Change Beneficiaries After Divorce?
One major impact of divorce on life insurance is your children’s access to claims benefits. In most cases, married couples list their spouse as the main beneficiary of a life insurance policy. This makes sense when you are married as it allows your spouse to maintain household and other living expense. However, after a divorce, especially if there are no children, you most likely will not want your ex-spouse to profit from your death. Policy owners of life insurance can generally change beneficiaries whenever they choose unless they have appointed irrevocable beneficiaries. Contacting your insurance agent while going through a divorce can help you find out whether you can change beneficiaries under your policy at any time. Additionally, you should consider consulting with New Orleans life insurance attorney Peter Diiorio to ensure the protection of your legal rights and the rights of your children.
How Do I Protect My Children’s Right to My Life Insurance Benefits After a Divorce?
If there are any children from the marriage, protecting them becomes a parent’s top priority. In the case of minor children, you will want to make sure they can maintain the lifestyle to which they are accustomed and will not lack financial support. In this case, you may wish to maintain a life insurance policy naming your ex-spouse as the beneficiary. You could also maintain a life insurance policy in your ex-spouse’s name. The benefit amount that guarantees the children financial security until they are past college age.
If you do not have a life insurance policy and become a single parent after a divorce, consider setting up a life insurance policy that can protect your children. This is particularly important if the children rely on your income and do not receive income from their other parent. Life insurance issues can become complicated with a divorce. For peace of mind in securing your children’s future, speak to a trusted New Orleans Life insurance attorney today.
New Orleans Legal, LLC Can Help You After Your Divorce
Having an experienced Louisiana life insurance attorney like Peter Diiorio by your side can help you after a divorce. Consult with us early upon your divorce. ]We can advise you on how to update your life insurance policy and beneficiaries. If you have minor children or other questions regarding life insurance issues, contact us for assistance. A divorce is always a stressful and emotionally draining life event. Updating your life insurance policy may feel like yet another chore on top of all you are facing now. However, we can help make the process as painless as possible.
New Orleans Legal, LLC prides itself on providing clients with the individual care and assistance that they require. If you are unsure about how a divorce or other major life event could influence your life insurance policy, contact us now for a free consultation at (504) 897-5580.