How Life Insurance Is Handled In A Florida Divorce
When a married couple in Florida divorces, they must take a number of important financial steps. One of these is to determine what will happen to their life insurance policies. There are a few different ways that life insurance can be handled in a Florida divorce.
Both Spouses Keep the Joint Life Insurance Policy and Continue Paying the Premiums
If both spouses decide and agree to do so, they could keep their joint life insurance policy and continue paying the premiums. Some couples may feel that this is the best option for their family, as canceling a joint life insurance policy often means that they will not receive a refund of any premiums they have already paid.
If both spouses are able to keep the policy and continue to pay the premiums, it can provide them with some much-needed security for their kids if they pass away. It can also give them peace of mind, knowing that their children will be taken care of financially if something happens to one of them.
The Joint Life Insurance Policy Can Be Canceled
Even though a joint life insurance policy is often cheaper than two separate policies, a divorce changes everything. So, if you wish to move on and have nothing to do with your ex-spouse anymore, you may simply cancel the policy altogether.
In this case, the first thing you need to do is notify the insurance company that you want to cancel the policy. Second, depending on the policy type you hold, you may be responsible for any fees associated with canceling the policy. If you are considering canceling your joint life insurance policy after a divorce, make sure to keep these things in mind.