* One in 10 divorcees have forgotten to remove their former spouse as the beneficiary of their life insurance policy (10%)
Research from Legal & General has revealed that many people are forgetting to update key financial information following a divorce, which could have serious implications for their families’ financial futures.
One in ten people who have divorced (over 815,000 – 10%) have forgotten to remove their former spouse as the beneficiary of their life insurance policy meaning, if a claim was made, their ex would receive the payout!
Meanwhile, only 7% of people who had divorced discussed life insurance beneficiaries as part of their separation and just 27% have cancelled a joint life insurance policy they had when they were married. 6% of people waived the right to their joint life insurance policy during the divorce process.
Just 7% of people will consult a financial adviser as part of their divorce, leaving many vulnerable to financial errors which could have long-term consequences. 11% of divorcees, for instance, have either delayed or forgotten to remove their ex-partner from their will, running the risk that their ex could inherit their estate.
Once separated, many divorcees do not prioritise protection insurance with only 4% of people taking out a critical illness policy and just 3% taking out income protection.
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