Are you one of the millions of Americans who have gotten remarried after a divorce or gone through another major life change? If your answer is yes, take a moment to consider if you have kept your beneficiaries up to date on your life insurance policy.
Keep your beneficiary updated
The average person buys their life insurance policy when buying a home, getting married, or having kids. And because life is well…life…people get divorced, remarry, have more kids (or step kids come into the picture), or have their family dynamic change for yet another reason altogether.
“Gee, I should really update my life insurance policy,” is likely not the first thing on your mind in the middle of any life change…but forgetting to update your life insurance policy at all can lead to problems for your surviving family members after you are gone.
Save your family the drama
It’s easy- and understandable – to overlook paperwork during major life changes. But it’s an oversight that could lead to your life insurance policy still naming your ex-spouse as beneficiary. In an instance like this, your surviving spouse could conceivably contest your ex-spouse as the named beneficiary on your life insurance policy.
If your family decides to contest your life insurance policy, they may face a difficult, drawn out, and expensive legal fight. The final call doesn’t belong to the insurance company but to the courts.
Making sure to update your life insurance beneficiary(ies) saves your family the drama of a legal battle while they are grieving. Just make sure to document your updates and tell your loved ones. Knowing you’ve done all you can to provide for them after your passing can provide you with peace of mind.