Arranging suitable protection insurance s is often ‘overlooked' by people going through a divorce, Aegon has warned.
The insurer said this in response to new Office of National Statistics figures which showed the number of divorces in England and Wales in 2012 rose to 118,140, an increase of 0.5% since 2011, when there were 117,558 divorces.
The number of divorces in 2012 was highest among men and women aged 40 to 44. Almost half (48%) of couples divorcing in 2012 had at least one child aged under 16 living in the family, the figures showed.
Aegon said the key protection questions advisers must consider with clients going through a divorce are:
• Could your client afford to support two families?
• Could your client afford to maintain the current standard of living for their children if they or their ex-partner were to become ill or die?
• What if an accident or illness meant they could no longer work, or needed time to recover?
• How would they meet monthly commitments such as mortgage payments, food and utility bills?
• Do they have any joint financial policies that will need separating?
• Are their current joint life policies flexible enough to be separated or altered to suit the new circumstances?
John Wilkinson, protection director at Aegon said: "Many parents who are divorcing will painstakingly negotiate housing arrangements, maintenance payments and pensions, but overlook financial protection for their children in the event of a parent's sickness or death. With divorce on the rise, it's vital that anyone who's divorced or getting divorced consider their protection needs, in fact it's often more important than while married."
"After divorce there could be new families involved, which would mean two families to be looked after and assets having to be shared in the event of death. People also need to consider whether any non-earning parents are insured against death or illness.
"Clearly, if the parent who stays at home to look after the children could no longer do so due to death or illness, this would have financial implications for the working former spouse. Even those without any dependants, may have mortgages, debt, or a lifestyle they would like to maintain for which protection could be vital."
