Considerations To Make When Choosing A Life Insurance Policy As Part Of A Divorce Settlement

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If you are in the throes of a divorce, you are likely trying to negotiate as hard as you can to get the funds and the resources that you need to make sure that both you and your children are able to live in a situation that is most likely to help them succeed. One part of your divorce settlement, if you are negotiating on how much child support your soon-to-be-ex-spouse is going to have to pay, is also a life insurance policy that you will require him or her to take out. You need to be sure that, in the unlikely event that you soon-to-be-ex-spouse dies, he or she has a life insurance policy that will allow you to continue paying for your children's education and well-being. Here are some considerations to make when negotiating a life insurance policy as part of your divorce settlement:

1. Is part of the child support agreement between you and your soon-to-be-ex-spouse covering your children's college tuition?

If the answer to the above question is yes, then you need to be sure that the life insurance policy that gets taken out is enough to cover the college tuition, or at least the share of the college tuition that the child support is going to help cover. This can be hard to calculate out. Take the average amount of college tuition for your state, including both public and private institutions. Then, hammer out what percentage of the tuition your spouse is going to be in charge of paying. Make sure that at least that amount, plus the normal child support payments until all of your children are over the age of eighteen, is covered by the policy.

2. Are you worried that your soon-to-be-ex-spouse might not make the payments?

If you are worried about this, make sure that you have as part of your divorce settlement that you are put on the policy as someone that needs to be notified in the case that the payments are not being made. If the payments are not made on a life insurance policy, then the policy will no longer be valid and you won't be able to gain its benefits.

3. Are you worried about the beneficiary changing?

If you are worried that your soon-to-be-ex-spouse is going to marry and change the beneficiary of the policy to his new spouse, then you need to be sure that you are the owner of the policy and the soon-to-be-ex-spouse is the insured person. This will allow you to make sure that the beneficiary is not changed.

For more information, talk to a company that specializes in life insurance, such as Advantage Insurance Agency, Inc.

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