Just realized my life insurance was way off after a casual chat with an agent

I was talking to a friend who sells insurance over coffee last Tuesday, and she asked what I had for term life. I told her I had a $250k policy I got 10 years ago when my kids were little. She pulled out her phone and showed me that with inflation and my kids being teenagers now, that same $250k is only worth like $190k in buying power today. Plus I never updated it after we bought our house in 2019. I went home and checked my policy documents, and sure enough it still lists my ex-wife as the beneficiary from when we were married. That was a shocker. Has anyone else gone years without checking on their life insurance numbers or who is listed on there? I feel like this is something nobody talks about at family gatherings.

3 comments

3 Comments

wesley_jones15d ago

Whoa, that's a rough surprise to find out about the beneficiary thing.

the_wendy15d ago

Funny thing about beneficiary designations, they actually override your will in most states. So you can have a perfectly legal will leaving everything to your kids, but if that old ex-spouse is still listed as the beneficiary on your retirement account, they'll get the money first.

ninaowens15d ago

My aunt had her life insurance go to some guy she dated in the 80s because she forgot to update the form... took her kids years to sort it out in court.