One in 10 divorcees have forgotten to remove their former spouse as the beneficiary of their life insurance policy.
Research conducted among 2,945 UK divorcees found 10% had 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 pay out.
Meanwhile the survey for Legal & General found just 7% of people who had divorced discussed life insurance beneficiaries as part of their separation and just 27% had cancelled a joint life insurance policy they had when they were married.
A similar number (6%) of people waived the right to their joint life insurance policy during the divorce process.
And just 7% said they would consult a financial adviser as part of their divorce, leaving many vulnerable to financial errors which could have long-term consequences, the insurer said.
Once separated, many divorcees also did not prioritise protection insurance with only 4% of people taking out a critical illness policy and just 3% taking out income protection.
James Shattock, managing director, UK protection at Legal & General, (pictured) said: “Divorce is always difficult but, without advice, it can be a 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.“
