Reader’s Question:

My parents are planning to have a divorce. My father has a life insurance in San Antonio Texas. Once they divorce, can my dad change the beneficiaries on his insurance?

Amanda

San Antonio TX

 

Any life insurance company Texas or any company from any state for that matter has no choice if a policy holder wants to change beneficiaries. As long as the holder has been paying the premiums, then the holder can do whatever he wants.

However you should know that in divorces, there are provisions that require one party to provide alimony to the other. You should ask your parents if their divorce papers include a stipulation that your dad should continue to have a life insurance with the children as beneficiaries. Make sure also that the in the settlement papers, it is defined who the official owner of the policy is. This is very important since whoever has control over policy has the right to name who its beneficiaries are.

By the way I forgot to ask how old you are. If you have a younger brother or sister they can be the beneficiary. Be sure to ask the court to order your dad to have you or any of your siblings named as beneficiary in a life insurance. It is not unusual for the court to name an ex-wife, your mom, as the beneficiary of a life insurance as part of the settlement.

But what if your dad doesn’t follow what the court has ordered and change the beneficiary on the policy that he got from the life insurance company Texas? Simple. Just go back to the court with your mom and reveal the violation.

One really good thing about the court ordering your dad to get a life insurance with you or your mom or any of your siblings as beneficiaries is that it can never be challenged. If something happens to your dad, though I hope nothing will, the life insurance is not covered by estate law. So whoever is named as beneficiary will get it.

Good luck on dealing with the divorce. I do hope that your dad names you on whatever policy he has on any life insurance company Texas.

Tags: life insurance policy, life insurance policy cash value, life insurance policy dividend, life insurance policy for parents, life insurance policy owner, life insurance policy quotes, life insurance policy review, life insurance policy sample, life insurance policy search, life insurance policy types