Life Insurance spousal beneficiary voided if divorce

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Life Insurance spousal beneficiary voided if divorce

Post by dm200 » Sat Aug 12, 2017 12:27 pm

FYI - for those in the situation of a divorce and there are life insurance policies involved, be aware of what does or does not happen. [I am not in this situation, but was reading some fine print in a life insurance policy I have]

The details (from what I understand) are dependent on applicable state low. In this state (Virginia) if a spouse is the life insurance beneficiary AND the insured and the spousal beneficiary divorce, the spousal beneficiary is voided.

Depending on who you are, that could be good or bad. If you are the second spouse, for example, and the insured died and never changed the beneficiary from spouse #1 - then that is good for you. If, however, you are spouse #1 and believe that you are the beneficiary and ex-spouse dies - then that is not good for you.

There may also be similar state-specific provisions for other types of beneficiary designations, such as retirement accounts and POD/TOD.

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