Divorced couples.

Divorce is a difficult time for everyone involved, parents and children are placed under emotional pressure. 

As well as the emotional stress, the financial implications of divorce and separation are perhaps the most serious. In some cases, the person who cares for the children will not be working or will need to seriously think about their future career options. The person without the children is likely to be liable for some form of child or spousal maintenance.

Have you considered whether you have adequate protection in place to protect yourself and your children?

When considering life insurance in the event of a divorce, you may want to think about:

• any joint insurance policies that may need to be cancelled or amended
• if you’ve relied on your ex-partner’s employer to provide benefits in the past, its unlikely that this will still be available
• remember not to cancel any existing policies until a replacement policy is arranged. 

Michael and Sarah’s story

Michael and Sarah were together for 18 years and had two children. By the time the children had reached the ages of 15 and 16, they decided the marriage was no longer working for them. Michael moved into a rented apartment, and Sarah kept the house and custody of the children.

Both Sarah and Michael had continued to work throughout their marriage; and because of this, were able to manage the two households financially. The children were getting over the divorce. Michael had begun to see someone and Sarah was enjoying the challenges of her job whilst juggling the lifestyle of a single mum. But when Sarah was diagnosed with breast cancer she felt her world had stopped.

As a result of her cancer diagnosis, Sarah had one of her breasts completely removed. She fought through the disease and after 18 months of therapy won her battle and was in remission.

Sarah’s future without protection:

• Sarah’s employer kept her job open and continued to pay her, however her income was reduced. She was constantly concerned about her finances and only ever had enough money to cover her regular living expenses. 
• Recuperation at home as a single parent was difficult. Her children were helpful, but Sarah found it difficult to perform even the most simple of tasks when going through treatment. 
• Sarah’s stretched finances mean that she felt pressured to returned to work as soon as possible, after her return she was regularly off sick over the following year.

Sarah’s future with protection – Level Term Assurance with Critical Illness Cover

• Sarah claimed the additional payout from her Level Term Assurance with Critical Illness Cover policy. She met the mastectomy for ductal carcinoma in situ definition and received the maximum lump sum payment of £25,000. 
• The money meant that Sarah could afford to hire someone to help her around the house for some time after her procedure and during her therapy. This allowed her to recuperate more comfortably at home.
• Once in remission, the cash payout took the financial pressure off Sarah and allowed her extra time off work to recover in mind and body before returning to work. She was able to spend extra time off once in recovery with her family and friends and could even take a holiday with her children. 
• It was also a relief for Sarah to know that her policy remained in place and that she still had this valuable protection for several years to come.

This is not advice, you should consider your individual circumstances when deciding what level of protection you need, if you are unsure you should seek advice from your financial adviser. All characters in this story are fictitious; any resemblance to people living or dead is purely coincidental.