Newly divorced father greets his daughter after her mother drops her off.

Tips for managing your life insurance after divorce

Getting a divorce? You may want to review your life insurance for these reasons.

Most people buy life insurance to help family members stay financially secure after the policyholder's death. Yet, when a marriage ends, the topic of life insurance after divorce is too often overlooked.

These tips can help you and your soon-to-be-ex discuss important changes to your policies before you sign the papers:

  1. Determine how much coverage you'll need. Examine what your ex-spouse's financial situation would be like if alimony and/or child support payments ended. Talk with your State Farm® agent and divorce attorney to arrive at a specific amount.
  2. Read the divorce agreement carefully. Oftentimes, life insurance policies are used as security for alimony and child support payments. Before you sign any documents, make sure they meet your needs and that you'll be able to comply with them. Divorce agreements are legally binding and can be difficult to alter. Discuss any questions you might have with your legal representative.
  3. Discuss duration of coverage. The time frame for any obligatory life insurance coverage varies, often depending on the length of the court-ordered alimony and/or child support. These are typically temporary needs. Ask your insurance agent about a term policy which could be used to help meet the financial obligations of raising your children or providing your ex with financial support should you pass away.
  4. Decide who will pay the premiums. Having your ex-spouse pay the insurance company may be convenient, but if you're concerned about the possibility of default, talk with your lawyer about having payment responsibility written into the divorce agreement. Or, have your ex add you to the policy record so that you may receive duplicate copies of billing and lapse notices. Failure to pay the premium could end up cancelling the policy.
  5. Re-designate beneficiaries. Depending on the divorce settlement, many couples will rename the beneficiaries of the life insurance from their ex-spouse to their children or create a trust to handle the proceeds of a premium. In some states, probate laws automatically disqualify a former spouse from receiving life insurance proceeds unless the insured re-designates their ex-spouse after the divorce. If the children are minors, consider appointing an adult custodian or trust to receive and handle the benefits on their behalf. Be specific about when the children will receive the money and what percentage each will receive. Also keep in mind that beneficiaries cannot be re-designated after the insured's death, so it's critical to keep the policy up to date.

Get a quote for term life insurance – if you are interested in additional life products, please contact a State Farm agent.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.

State Farm Life Insurance Company (Not licensed in MA, NY or WI)
State Farm Life and Accident Assurance Company (Licensed in NY and WI)
Bloomington, IL


Start a quote

Select a product to start a quote.

Find agents near
you or contact us

There’s one ready to offer personalized service to fit your specific needs.

Related articles

Divorce checklist

When divorcing there are many considerations such as legal aspects, children, division of wealth, and establishing a different life.

Whole Life insurance

Read about the difference between Ordinary and Limited-payment life as well as uses for Whole Life insurance.

How does life insurance work?

Understanding how life insurance works can help you plan for the future of your loved ones or help protect your business.

Term life insurance vs. Whole life insurance: Which is right for you?

Evaluating the advantages vs. disadvantages of these types of life insurance may help you decide.