Last Updated on April 14, 2024 by Ali Hamza

Life insurance policy is bought by an individual to provide financial security to the love one’s in their absence. However, as life is unpredictable, so are the relationships we share with our loved one’s. Marriages can sour and at times divorce becomes inevitable.

Hence, it’s important you know how divorce would affect your life insurance policy. Below are some tips on how to handle your life insurance policy after divorce:

Individual life insurance policy

Most people nominate their spouses as beneficiaries of their life insurance policy. But what if they get divorce?

Life insurance companies in India offer flexibility for changing the nomination named in the policy at any point of time. You can contact the life insurance companies or even your insurance advisor to update the nomination details in your policy.

Joint life insurance policy

Several couples prefer buying a joint life insurance policy where husband and wife both are cover under a single insurance as the premiums are comparatively cheap. Under these policies, a portion of the sum assure is pay on the demise of the first policyholder and the remainder is pay on the demise of another.

So how would the life insurance policy get affect if the couple decides to part ways is the question here? Generally speaking, life insurance companies in India do not allow dividing the joint life insurance policy into two separate individual policies. However, there are a few exemptions to this rule:

  • If the life insurance policy bought by the couple has an investment component then they can surrender the policy and the fund value can be divide among the two as per the divorce agreement.
  • On mutual agreement, one can assign the policy to another. Post assignment, the benefits under the life insurance policy can only be avail by the policyholder and the premiums for the same cannot be divide between the two. Thus, the policy premiums and benefits will belong to only the assignee.
  • If it is a pure term plan and either of the two joint policyholders do not want the other spouse to receive any benefits from the life insurance policy then they can simply cancel and surrender the policy.

Child Insurance plans

A child insurance plan is usually taken by a couple to ensure that your child’s future needs such as education, marriage, etc are taken care of in their absence. Hence, the beneficiary for these policies is the child and not the spouse.

After the couple gets separate, these life insurance policies are best handle through a discussion between the couple and assigning the guardian who is capable of paying the premiums.


While divorces are harsh, the recent trends show an increasing number of divorces in India. Hence, it’s of utmost importance you consult an IRDA Register Insurance Advisor to guide you in taking the right decision with your life insurance policy.