Your options for life insurance after separation explained
With 40% of life insurance policies being joint policies, understanding your options after divorce is crucial. This guide explains how to split policies, use separation benefits, or secure new individual cover when your circumstances change.
Divorce doesn't automatically change your joint policy - you must take action. Below we explain your options and help you make the right decision for your new circumstances.
Compare Life Insurance Quotes »Your joint life insurance policy doesn't automatically change or cancel when you divorce - you must take active steps to update or replace it.
With 40% of all life insurance policies being joint policies, this is a crucial consideration during divorce proceedings. Understanding your options ensures you maintain appropriate cover for your new circumstances.
**Your main options after divorce:**
**Important:** Joint life insurance is typically a 'first death' policy, meaning it pays out when the first person dies and then the policy ends. If you die before your ex-partner, they receive the payout but lose all cover - and may not be able to get new insurance if their health has deteriorated.
Always secure new individual life insurance BEFORE cancelling your joint policy. This ensures you're definitely insurable before losing existing cover.
A separation benefit (also called split option) allows you to convert a joint policy into two individual policies after divorce without new medical underwriting.
This is particularly valuable if either partner has developed health conditions since taking out the original joint policy, as you're guaranteed acceptance at standard rates based on your original underwriting.
**How separation benefits work:**
**Example scenario:**
Original joint policy: £300,000 cover, £45/month. After divorce using separation benefit: Partner A gets £150,000 policy at £35/month, Partner B gets £150,000 policy at £30/month. Total: £65/month (44% more expensive, but both partners remain insured).
**Which insurers offer separation benefits:**
If you don't use your separation benefit within the specified timeframe, you lose it permanently - you cannot activate it years after your divorce.
Individual life insurance policies after divorce typically cost 30-150% more than your original joint policy, depending on age, health changes, and coverage amounts.
Joint life insurance is cheaper because it only pays out once (when the first person dies), while individual policies each pay out independently, meaning the insurer faces potentially two claims.
**Typical cost increases after divorce:**
**Factors affecting your post-divorce premiums:**
**Cost-saving strategies:**
Courts often require one or both parties to maintain life insurance as part of divorce settlements, particularly when children are involved or spousal maintenance is payable.
These court orders protect the financially dependent party and ensure children remain supported if the paying parent dies.
**Typical court-ordered life insurance requirements:**
**Example court order:**
"The Respondent shall maintain life insurance of not less than £150,000 with the Applicant or a trust for the benefit of the children as beneficiary, for a period of 15 years or until the youngest child attains age 18, whichever is sooner. Proof of policy and payment of premiums shall be provided to the Applicant annually."
**When courts typically order life insurance:**
Failure to maintain court-ordered life insurance is contempt of court and can result in enforcement action, fines, or even imprisonment in extreme cases.
**Practical considerations:**
When securing new individual life insurance after divorce, it's essential to compare quotes from the whole market and understand how your changed circumstances affect your needs.
Your life insurance requirements as a single person or co-parent are likely very different from when you were married. Taking time to reassess ensures you get appropriate cover at the best price.
**Steps to secure individual cover after divorce:**
**Common mistakes to avoid:**
LifePro specialises in helping divorced individuals find appropriate individual life insurance. We understand the unique challenges and can often find better rates than going direct to insurers.
Use our free comparison service to get quotes from 50+ UK insurers. Our expert advisors can help you navigate the complexities of life insurance after divorce and ensure you get the right cover at the best price.
Get Your Free Quote »Your joint life insurance policy doesn't automatically change or cancel when you divorce - you must take action. Options include: using a separation benefit to split it into two individual policies (if your insurer offers this), cancelling and buying new individual policies with fresh medical underwriting, having one person keep the policy while removing the other, or continuing jointly if you have shared obligations. Remember, joint policies are 'first death' - they pay out when the first person dies then the policy ends, leaving the surviving ex-partner without cover.
A separation benefit (also called split option) allows you to convert a joint life insurance policy into two separate individual policies after divorce without new medical underwriting. For example, a £300,000 joint policy could split into two £150,000 individual policies. You keep your original underwriting terms even if your health has deteriorated, though premiums increase (typically 30-50% more total). Not all insurers offer this, and you usually must request it within 6-12 months of your decree absolute. Insurers like Aviva, Legal & General, and Scottish Widows commonly offer separation benefits.
Yes, you should notify your insurer about your divorce, especially with a joint policy or if your ex-spouse is the beneficiary. While there's no strict legal requirement, failure to update can cause major problems - your payout could still go to your ex-spouse if they remain the named beneficiary. For joint policies, you need to notify the insurer to exercise options like separation benefits (usually within 6-12 months). Provide your decree absolute as proof and decide whether to split the policy, cancel it, change beneficiaries, or update ownership. Divorce settlements often require proof of updated life insurance.
In many cases, yes - especially if you have children together or receive child maintenance/spousal support. If your ex-spouse pays £500/month child maintenance for 10 years (£60,000 total) and dies, that income stops. Life insurance replaces this lost maintenance. Courts often order this protection. You can take out a 'life of another' policy where you insure your ex-spouse's life, you own the policy and pay premiums, and you're the beneficiary (or children via trust). This is particularly important if your ex-spouse is self-employed (no employer death benefits) or the sole provider of maintenance.
Yes, but it depends on your policy type and divorce settlement terms. You can change beneficiaries without ex-spouse consent by completing a 'change of beneficiary' form with your insurer. For joint policies, you can use separation benefits to split it, cancel and get individual cover, or remove them and continue solo. However, if your divorce decree requires you to maintain life insurance with your ex-spouse or children as beneficiary (common for child maintenance protection), you cannot remove them without breaching the court order. Always check your divorce settlement before making changes.
Individual policies after divorce typically cost 30-150% more than your original joint policy. For example, a joint policy costing £40/month for £300,000 might become two individual policies totaling £55-125/month depending on ages and health. Costs increase because: joint policies only pay once (first death) while individual policies each pay independently; you're now older than when you took the joint policy; any health deterioration since your original policy increases premiums; and if you started smoking during marriage, premiums can increase 150%. Use separation benefits if available to preserve original underwriting and minimise increases.
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