WEBVTT

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Now we'll shift our focus and look at

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insurance considerations , starting

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with life insurance . Odds are life

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insurance is probably one of the last

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things you want to think about after a

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divorce , but whether you need to take

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action from a divorce decree

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perspective or simply want to adjust

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things from a financial perspective ,

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revisiting your life insurance needs

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after a divorce is usually a good idea .

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Today we'll cover 3 important points on

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this topic , starting with how much

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life insurance you need now that your

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situation has changed . A great way to

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figure this out is to use the acronym

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LIFE . LIFE stands for liabilities or

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debts to be paid off , income to be

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provided , keeping in mind possible

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spousal and child support obligations ,

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final expenses to be paid , and

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education and other goals to be funded .

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Your life insurance coverage combined

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with any assets that would be available

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at your death should equal more than

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these four things combined .

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Fortunately , as a service member ,

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you're eligible for Service members

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Group Life Insurance or SGLI . Unless

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you decide to reduce it , you

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automatically receive $400,000 of

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coverage . That's a lot of insurance ,

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but now that you're divorced , it may

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or may not be enough , so be sure to do

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the math . Next , let's move on to our

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second topic . How divorce might impact

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the life insurance needs for your

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ex-spouse and your dependent children .

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Clearly , they should review their

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needs at this time too . Assuming they

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were covered under Family Service

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members Group Life Insurance or FSGLI ,

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your ex-spouse can keep that coverage

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for 120 days . During this time ,

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they'll have the opportunity to convert

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their coverage into a commercial life

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insurance policy on which they'll have

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to begin making payments . If they

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choose not to do this , the coverage

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will end . And here's an interesting

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point . In some situations , it might

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make sense for you to be the owner and

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beneficiary of your ex-spouse's policy ,

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just to make sure the payments are made

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and the policy remains in force with

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the correct beneficiary . Keep in mind ,

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even though your ex-spouse will lose

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spousal coverage , your dependent

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children coverage is free and cannot be

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reduced , declined or canceled . Now ,

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let's focus on our last topic ,

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beneficiaries . If you're not required

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by your divorce decree to keep your

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ex-spouse as the beneficiary of your

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life insurance policies , you might

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want to remove them as your beneficiary .

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This won't happen automatically just

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because you're divorced . Assuming you

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are legally allowed under your divorce

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decree to change the beneficiaries on

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your SDLI policy , the process is very

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easy . Simply sign into the Mill

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Connect website and go to the SGLI

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online enrollment system found on the

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benefits tab . And to learn more about

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the topic of life insurance , speak

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with a financial counselor on your

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installation .