"Divorce is always difficult, but without advice, it can be costly too."
- James Shattock, Managing Director, UK Protection at Legal & General (L&G)
Of those surveyed (2,945), 7% discussed Life Insurance beneficiaries as part of their separation, while just 27% have cancelled a joint life policy they had when married. Notably, 6% of people waived the right to their joint life plan during the divorce process.
Furthermore, one in ten (10%) divorcees have forgotten to remove their ex-partner as a beneficiary of their Life Insurance. This equates to over 815k divorcees whose ex-partner will receive a payout not intended for them.
Only 7% said they’d been willing to consult a financial adviser as part of their divorce, despite the potential of long-term consequences. This had led to 11% of divorcees having either delayed or forgotten to remove their ex-partner from their will.
Following a separation, 96% of divorcees didn’t purchase Critical Illness Cover (CIC) while just 3% took out Income Protection (IP).
“Divorce is always difficult, but without advice, it can be costly too. It’s 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,” explained James Shattock, Managing Director, UK Protection at Legal & General (L&G).
“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,” he added.
