In fact, many divorce decrees specify that the ex-spouses must have life insurance on themselves, with the ex-spouse named as the beneficiary. Alternatively, each ex-spouse could own a policy on the other ex-spouse.

Can a former spouse be a beneficiary on a life insurance policy?

To avoid situations where ex-spouses incidentally benefit from policies of their deceased former spouses, many states have enacted laws that automatically revoke the ex-spouse as the beneficiary on the life insurance policy following divorce. These laws were designed to prevent conflict among families and limit litigation over disputed policies.

Can a spouse claim life insurance after a divorce?

If the insured created a will or a trust after a divorce and included his life insurance policy in them, but failed to update a beneficiary on his policy, the existing beneficiary may have a valid claim for life insurance money after the insured’s death.

Can a company take out a life insurance policy on You?

We’re talking about life insurance policies on rank-and-file workers. The practice of taking out such policies on common workers has led to this field of insurance being called ‘janitor’s insurance’ or even ‘dead peasants insurance’ in some documented instances! Why would a company want to take out a life insurance policy on its workers?

Who is entitled to life insurance after divorce?

Questions about ex-spouses’ rights to the life insurance policy of their deceased former spouses come up very frequently in our practice. This area of law can be quite confusing to many people because there is no universal rule on who receives life insurance after divorce.

Can a spouse cancel a life insurance policy?

It’s not at all uncommon for a spouse to fail to comply with a divorce decree over a life insurance policy. In previous cases, one spouse (often the husband) cancels the life insurance policy, replaces it or changes the beneficiaries. There are several issues here.