What happens to joint life insurance on separation?
A joint life insurance policy pays out on the first death — and then the policy typically ends. On separation, you have several options:
- Cancel the policy — both parties lose their cover, but you can each take out new single policies (subject to health at the time)
- Claim a split — some insurers will split a joint policy into two single policies on divorce or legal separation, with no new medical questions
- Continue the joint policy — possible but complicated if you're no longer on good terms, as both parties must agree to any changes
Protecting child maintenance with life insurance
If you're paying or receiving child maintenance, life insurance can be structured to continue maintenance payments if the paying parent dies. A family income benefit policy — paying monthly rather than a lump sum — is particularly well-suited to this purpose.
Do you need to update your beneficiary?
Yes — if your ex-partner is named as beneficiary on your life insurance, update this immediately on separation. In England and Wales, separation alone does not automatically remove them as beneficiary (only absolute divorce decree, in certain circumstances, may affect this).
Frequently Asked Questions
Many insurers will split a joint policy into two single policies on legal separation or divorce, with no new medical underwriting required. Contact your insurer to ask.
Your life insurance doesn't change automatically on divorce. You need to proactively update beneficiary nominations and review whether your existing cover still meets your needs.