Around 7% of people who had divorced talked about life insurance beneficiaries as part of their separation and 27% have cancelled a joint life insurance policy they got when they were married, according to Legal & General (L&G) data.
Only 6% said they had waived the right to their joint life insurance policy during the divorce process.
The report found that around 7% said they would consult a financial adviser as part of their divorce, which L&G said could leave “many vulnerable to financial errors, which could have long-term consequences”.
Approximately 11% of divorcees have delayed or forgotten to remove their former partner from their will, which runs the risk that their ex could inherit their estate.
L&G added that only 4% of people take out critical illness cover and 3% take out income protection post-divorce.
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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.
“We’ve also produced a financial health check tool to help people consider the wider financial implications of a separation.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: A tenth of divorcees have forgotten to remove former spouse as life insurance beneficiary
