Research from L&G has revealed that one in 10 divorcees in the UK have not removed their ex-spouse as the beneficiary of their life insurance policy.
The study found that only 7% of divorced individuals discussed life insurance beneficiaries as part of their separation, and just 27% cancelled their joint life insurance policy from when they were married.
Additionally, 11% of divorcees delayed or forgot to update their wills to remove their ex-partner as a beneficiary.
Following separation, many do not prioritise protection insurance, with only 4% taking out critical illness cover and just 3% opting for income protection.
James Shattock, managing director of UK protection at L&G, said: “Divorce is always difficult but, without advice, it can be costly too.
“It’s really important for anyone going through a separation to be fully aware of the financial implications of divorce and to ensure they review other important elements, like their wills and financial products like life insurance, to ensure beneficiary information is updated.
“Advisers can play a key role in supporting clients during a separation, helping them to put a plan in place for the costs associated with a divorce, any shared debts and, potentially, making sure a Clean Break Order is in place.”
Shattock added: “We’ve also produced a financial health check tool to help people consider the wider financial implications of a separation.”
