A divorce can be one of the most stressful times in anyone’s life. Late last year, a middle-aged couple contacted their insurance provider to tell us they were in this situation. They wanted to cancel their joint insurance and sent their request on New Year’s Eve.
In January this year, our Adviser called them to discuss their request and spoke to the wife who explained the reason for the cancellation. Our Adviser explained the current benefits and policy ownership and suggested a transfer of ownership might be more beneficial for both partners. In fact, the client was unaware a transfer of ownership was even possible and immediately agreed to it. Our Adviser then called the husband and explained the opportunity.
During that conversation, it became apparent the husband had previously had cancer and that this would make it better for him to retain the policy.
With his history of cancer, a situation might arise where he might want to buy a house again and transferring the ownership of the policy would help him protect a future mortgage.
The most important lesson to learn is that many people don’t fully understand insurance policy ownership and that by talking with your AdviceFirst Adviser, who knows the ins and outs, you may find out that you don’t need to cancel your policy.
Much better, you could transfer the ownership to help support you in your new life