Life Insurance

[RedSocksRebel]

I have a 6 year old son and a life insurance policy that I took out 4 years ago. My husband couldn't get one due to multiple health issues. We are now separated and in the process of divorce, he has left the country, is not contesting the divorce at all, doesn't even have a lawyer.
I am in Northern Ireland, I think that makes a difference with regard to if/ when financial child access and financials are looked at. They have never been mentioned so far, my lawyer has never asked me about my pension or this policy or anything of the sort but I believe in NI unless the other side contests, then this is normal procedure. From what I read on here I think things are some differently in England, Scotland and Wales.
Anyway, the last time I spoke to my life insurance company Aviva (just about a change of address) I mentioned that I would be divorcing and would want to change the beneficiary so that it's someone in my family and closer to home. The person on the phone said that this would require ending the policy and starting a new one. Is this usually the case?
I have it on my long list of jobs to look into further some day I get time. I just said ok, thank you and hung up that day, thinking I may as well wait till the divorce is through first anyway. Ideally I would not want to throw away any benefit accrued and obviously the money is of course for the care of my son. I guess in the event of my death my stbxh might want to take our child overseas and have full custody so he would still be the logical beneficiary in that case.
I realise there is the bigger issue of what happens to my son in the event of my death but I know my husband will not engage in this conversation so I just wondered, from an admin point of view what usually happens to life insurance policies in divorce, or what your experiences have been.
Thank you in advance.

What type of policy is it? If it is term assurance the only value is when you die or possibly get a terminal diagnosis depending on the terms of your policy, and there is no accrued value. If it has an endowment or whole of life element it will be costing a lot more per month per amount of cover and is more of a savings policy.

Thank you for your reply. It's a term assurance one. By value I guess I mean that being 4 years older now, to get the same payout would now cost me more each month, if I had to start a new policy. Although I suppose to have it until the equivalent age, means a term that is 4 years shorter.

Term assurance if you pay a month you get a months cover. The term is the maximum. You want to change anything then yes normally you start again. Whether you pay more or less is largely luck not judgement imho...

Thank you, Otter.

So you have simply told them you are no longer married and they are saying you need to end the policy and start again?
That doesn't seem right. Are they just trying to sell you a new policy?

Me and my ex had a joint policy which we kept after our divorce as the premiums are so cheap. It's also with Avila and we've been allowed to carry on with it and we don't even have any contact whatsoever with each other.

Thanks, Secretsout. Not just telling them I'm divorcing. I think it's because I enquired about changing who receives the money in the event of my death. As it stands, it's my stbxh. In your case you have not changed this perhaps.
Maybe I shouldn't either.. it's just with him being so far away and NEVER seeing my son (just occasionally skype) I don't know that he would definitely step up.
It's uncomfortable thinking about it never mind talking about it, in my case it will not go well......
The thought of him taking my son so far away from my family and from his friends, school etc. I hate the thought of it but it would be his right to do so.

I divorced recently. I was advised to make a new will and change the beneficiary nominated on my life insurance policy because the will would not take precedence over the nominated beneficiary on the life policy.

Are you and your husband joint owners on the policy with you the life assured? If that’s the case, he is automatically the beneficiary on your death if the policy is still in force then.
Premium amounts are not luck, as was indicated earlier, they are rates calculated based on actuarial assumptions about numbers of deaths per age group. Rates can go up and down depending on what’s happening in the market with competitors, but generally you will pay more if olds, but the shorter term would be factored in also.

You can change the owner on some policies by deed of assignment, but would need your husband to sign.
Might be easier to just take out a new one and cancel the old one.

But don’t cancel the old one until you have replaced it!

Thanks everyone, I'll get the divorce done first and then call Aviva and think through my options. We are not joint owners of the policy. I was surprised you couldn't change the beneficiary (like what if they died or something - not planning on arranging that needless to say) but I guess they don't want people chopping and changing. Thank you for your input and experiences

@Massivejugs were you able to change the beneficiary ok?

@Shopgirl1 for sure, anything that requires his signature is a problem. The divorce will be hard enough (in a practical sense) with him being overseas. Thanks for your advice

yes - just a phone call and a form.

Hi RedSocksRebel,
I wanted to offer my help. I am a self-employed protection adviser and I specialise in giving professional FCA regulated advice and helping people get the right cover they need.
I see no reason why you can't fill out a change of beneficiaries form from Aviva's website and simply request they amend your beneficiary.
Take care,
Daniel

I was wondering similar. We’ve legally separated ( in Scotland) but are still amicable and want to Retain the joint term assurance policy as premiums are low. I’ve been keeping on paying the premiums and haven’t informed company of our separation. Would it still pay out or would it be invalidated if we haven’t informed them? Neither of us have wills ( yet) must do that!