When it comes to life insurance, there are several important considerations that individuals should keep in mind. Understanding concepts such as non-probate assets, beneficiary designation, and the impact of divorce from a spouse is crucial for making informed decisions. In this blog, we will delve into these three key areas of life insurance to give you an understanding of their significance.


  1. Non-Probate Assets

When it comes to life insurance, it’s important to understand that life insurance policies fall under the category of non-probate assets. Non-probate assets, as the name suggests, do not go through the probate process and are distributed directly to the designated beneficiaries. Other non-probate assets can include retirement accounts and payable-on-death accounts.

  1. Beneficiary Designation

The beneficiary designation is a critical aspect of a life insurance policy. It determines who will receive the policy proceeds upon the insured’s death. It’s essential to review and update your beneficiary designation regularly to assure it reflects your current wishes. Failing to update the beneficiary designation can result in unintended distributions, such as the proceeds going to an ex-spouse or someone who is no longer part of your life.

  1. Divorce from Spouse

Going through a divorce can have significant implications on life insurance policies. It’s crucial to understand how divorce affects beneficiary designations and the distribution of life insurance proceeds. In some states, divorce automatically revokes the beneficiary designation of a former spouse. However, that may not be the case with all non-probate assets, such as life insurance policies.



Life insurance is a crucial aspect of financial planning and providing for your loved ones’ future. By understanding non-probate assets, beneficiary designation, and the impact of divorce, you can ensure that your life insurance policy aligns with your wishes and protects your loved ones as intended.

Should you have any further questions or require assistance, do not hesitate to reach out to our team of experts at Craig, Terrill, Hamm, Grossman & Erwin, LLP today. Our law firm in Texas is here to help you navigate the complexities of life insurance, divorce, and non-probate assets.