Divorce Life Insurance

If you find yourself in this situation you ll need to think about how to manage any existing life insurance policies you have jointly or separately.

Divorce life insurance. The type of policy you have can determine if life insurance becomes a part of divorce proceedings. Life insurance for divorced couples. In many divorces that include provisions for alimony or child support it is a common practice to include a stipulation that the supporting spouse should carry a life insurance policy. There are also riders to these policies such as accidental death and dismemberment.

However life insurance is an important part of the discussion especially when children are involved because it can provide years of financial protection for those children and for one or both spouses. Sometimes life insurance as an issue can be overtaken in a divorce by other higher profile and more contentious issues such as child custody alimony and asset division. In most cases part of the divorce settlement process lies is granting alimony and child support to the spouse who depends on the other one financially. Upon divorce it is important to review the beneficiary designations on existing life insurance policies and make any necessary changes.

The following answers regarding divorce and life insurance policies can help you identify and understand some of the issues that need to be considered during divorce negotiations. Term life insurance which lasts for a set term but has no cash value. Divorce is not only an upset for your family it can throw up unexpected financial difficulties too. This may depend upon the financial obligations between the parties such as alimony child support and other financial issues that may be contained in the divorce settlement agreement or ordered by the court.

Most married people with life insurance list their spouse as the primary beneficiary the purpose of life insurance is to protect those. If divorce makes you a single parent you may need adequate life insurance on yourself to protect your children whether your ex spouse is consistent in making alimony and or child support payments or not. There are two types of life insurance policies that people usually choose from. In many life insurance policies a person will name their spouse as the primary beneficiary but when the marriage goes south figuring out what to do with the life insurance policy is very important and often overlooked in lieu of other divorce.

Permanent life insurance which lasts your entire life and has a cash value. Insurance beneficiary changes to make during a divorce. Here are some of the things you ll want to consider. Whole life builds cash value universal life provides some flexibility to payments variable life has a stock market component and group life is usually provided by an employer.