Today we will let you know of a reason why you should update your life insurance beneficiary if you have life changes such as a divorce. Recently we had a life insurance broker from California in our office who has a voluntary group term life insurance product with Cigna.
He was telling us how one of the individuals enrolled in his group plan purchased a $150,000 life insurance policy. He and his wife ended up getting a divorce and he never remembered to go back and update his life insurance beneficiary.
Well a few years go by and the man ends up getting remarried. He and his wife were very happily married and then one day he ended up dying from an accident that left his new wife alone with their children. When his wife was trying to get everything setup for the funeral she took the death certificate to the insurance agent who wrote the policy.
Life Insurance Beneficiary
The insurance agent sent in the death certificate to the insurance company only to find out that the life insurance beneficiary had not been updated and the ex-wife was going to receive $150,000 from her ex-husband. Needless to say the current wife was already emotional but this sent her over the edge. The ex-wife was quoted as saying, “That is the only thing that jerk ever did good for me.”
This is a perfect example of why you should review your insurance policies and financial beneficiaries because things change over the course of our life and sometimes changes need to be made. Life events or life changes are great times to sit back and evaluate what needs to be done.
If you are interested in getting life insurance quotes please visit our website which can help you get quotes with over 30 companies in a matter of minutes. Term Life Insurance and Lifetime term quotes are available online, everything else would need a call to 1-877-936-2991.