My husband and I recently got separated. We have a few life insurance policies, including a term plan, a retirement plan, and a ULIP-based life insurance policy for our children, for which both of us have been paying the premiums. After this separation, will I still be eligible for the benefits under these policies? Is there any action I need to take to safeguard my and my children’s interests? 

Advice by Satishwar B., MD and CEO, Bandhan Life Insurance

This is a very important issue to address after a separation. During emotionally difficult situations, insurance and financial matters are often overlooked, but taking timely action now can help protect both your and your children’s long-term financial interests. It is important to note that separation does not automatically invalidate life insurance policies. However, your rights and eligibility under each policy will depend primarily on who the policyholder is.

In a life insurance policy, the policyholder has all the rights and obligations. The policyholder will therefore be able to decide on or even make changes to the existing details, such as nomination details.

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For policies where you are a policyholder, you will receive the maturity/retirement benefits in the case of the retirement plan and ULIP. In the case of the term policy, the nominee/s will receive the benefit. You can make your children as nominees, if not done already under these policies. The benefits under the policies will be given to your children if something unforeseen happens to you.For all policies you can make your children as nominees. By naming your children as nominees, the proceeds of the insurance policy will be secured for your children without any further steps.

For policies where your spouse is the policyholder, subject to mutual understanding, you may get those policies fully assigned in your or your children's favour. In such a case, you will be responsible for making future premium payments.

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To sum it up

It is recommended that the understanding of insurance policies with respect to the following points be clearly recorded in the separation agreement:
• Who will continue paying the premiums.
• Who will remain the policyholder.
• Who will be entitled to the policy benefits or maturity proceeds.
• How child-related policies will be managed.

Having these arrangements documented can help avoid misunderstandings or disputes in the future and ensure that both your and your children's financial interests are protected.

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Published on: Jun 16, 2026 4:59 PM IST