Breakups & Insurance: What Happens to Your Policy After a Divorce or Separation?
- Lewis Price-Milne
- Feb 17
- 3 min read
Valentine’s Day has come and gone, but for some, February isn’t all roses and romance. If you’re navigating a breakup, whether a separation or divorce, there’s a lot to untangle – from shared assets to living arrangements. One thing that often gets overlooked? Insurance.
If you’ve had joint policies or named your ex as a beneficiary, now is the time to review your cover and make adjustments. Here’s what you need to know about how a breakup can impact your insurance and what steps you should take to protect yourself moving forward.
Reviewing Your Life Insurance Policy
If you have life insurance, your ex-partner may still be listed as your beneficiary. In the event of your passing, this means they could receive your payout – even if that’s not what you’d want now.
What to do:
Check who your current beneficiary is and update it if necessary.
If your ex is financially dependent on you (e.g., child support obligations), consider whether they still need to be a beneficiary or if a trust might be a better option.
If you don’t have life insurance but now have dependents relying solely on your income, it may be time to consider getting cover.
Speak with your insurance adviser for some tailored and confidential advice around your personal situation.
Health Insurance – Who’s Covered?
Many couples have joint health insurance policies. If your policy was under your ex-partner’s name, you might no longer be covered once the relationship ends.
What to do:
Contact your insurer or your adviser to confirm your coverage status.
If you need a new policy, look into individual plans that suit your needs.
If you have children, check how their cover is structured – do they stay on your ex’s plan, or do you need to arrange their health insurance?
In my personal experience as an adviser, it can be tricky when children are included on a family policy which ends in divorce. There can be disputes over who pays for the cover. If the children end up under one of the parents, legally speaking, from a privacy perspective, the other parent can have no access or say in that policy. Even if the parent now paying wants to cancel.
Income Protection & Trauma Insurance – Financial Security After Separation
A breakup can bring financial uncertainty, especially if you previously relied on a partner’s income. If you have income protection or trauma insurance, it’s worth checking whether your coverage still aligns with your financial needs.
Consider:
If your cost of living has changed, does your income protection cover enough?
If you no longer have a shared mortgage, does your trauma cover need adjusting?
If you weren’t covered before but now have greater financial responsibilities, should you get a policy?
If you go from a two person income to a one person income, this will most likely affect the insurance you need.
Take Control of Your Future
Separation can be overwhelming, but reviewing your insurance ensures you’re financially protected for whatever comes next. Whether it’s updating beneficiaries, securing new cover, or adjusting existing policies, taking action now can prevent future headaches.
Need help reassessing your insurance needs? Start here.
The information in this article is general information only and is not intended as financial, medical, health, nutritional, tax or other advice. It does not take into account any individual’s personal situation or needs. You should consider obtaining professional advice from a financial adviser and/or tax specialist, or medical or health practitioner, in relation to your own circumstances and before acting on this information.
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