Life insurance policies remain valid after divorce but may require beneficiary updates
A divorce does not automatically invalidate or cancel your life insurance policy. However, you’ll likely want to review and update your policy details, particularly your beneficiary designations. Many Canadians choose to make changes to their coverage during or after divorce proceedings.
Important considerations include:
- Your beneficiary designation remains legally binding even after divorce unless you make changes
- Some divorce settlements may require you to maintain life insurance coverage for your ex-spouse or children
- You may need to adjust your coverage amount based on new financial obligations
- Consider updating your contingent beneficiaries to reflect your new circumstances