Call Today! 888-234-8376
Life Insurance to Protect Alimony and Child Support
If you are currently separated or going through a divorce, consider life insurance as part of a divorce settlement. However, if your divorce is already finalized, there are still some steps you can take.
Being a single parent is tough. Managing school schedules, working full time, and handling all household responsibilities on your own—these are just a few of the things a single parent has to balance.
If you receive some form of alimony or child support from your ex, then it’s bound to make things a little easier. But what if that very necessary monthly check just stopped one day? It’s every single parent’s nightmare, but in some situations, even the court cannot help you out. If your ex suddenly dies, your monthly income will drastically decrease.
There is something that you can do to protect your family and prepare for the unexpected. By purchasing a life insurance policy you help to secure a stable future no matter what circumstances arise.
Life insurance to protect alimony and child support
Buying a life insurance policy for yourself
As a single parent, you are more than just a caretaker; you are also a breadwinner and a provider. In the very unfortunate circumstance that you die prematurely, there’s nothing you can do to make up for the absence of your love and care. However, there is something you can do to make sure that your children still have some level of financial security.
There are many types of life insurance policies, however, if your primary concern is to find a life insurance policy that will keep your children financially stable in their growing-up years, then you may want to consider a term life insurance policy. This will cover you for a certain period of years. Different providers and policies offer different amounts of coverage, depending on how much coverage you would like to have and you can afford.
Usually term life insurance policies:
- Offer fixed rates
- Cover a certain period of time (as a parent, you are probably interested in coverage that will last at least until your child is 18 or 21)
Term life insurance policies may:
- Be convertible
- Not require a medical exam
- Include provisions covering disability, such as long term care riders
It is in the best interest of your children that you get at least some type of life insurance until they are adults.
Who will access the money if you die?
Your ultimate goal is to make sure that your children are the ones who benefit from your life insurance policy. While setting up your life insurance policy, you can take precautionary measures to insure that your policy money is wholly utilized for the needs of your children. One great way to accomplish this is to name your living trust as the life insurance beneficiary.
Life insurance coverage for an ex
If you are receiving some kind of financial help in the form of alimony or child support from your ex, then his early demise could potentially hurt your financial security. You may not know it, but in many cases, it is possible for you to take out a life insurance policy for an ex, even if you are not living together.
Does my ex need to know that I'm insuring him/her?
Yes. You cannot purchase a life insurance policy for an ex without his/her knowledge.
We know that things are often complicated in such situations, but unless you inform him/her, you cannot take out a life insurance policy for someone else.
The best way to get him/her on board is to explain that this life insurance policy is for the well being of your children. It will help you to continue to provide for their basic needs to give them the best chance in life possible. Hopefully, your ex will put your differences aside and understand the value of purchasing a life insurance policy.
Once he/she agrees, it may even be necessary for your ex to take a life insurance medical exam, depending on the type of policy you choose.
What if you have no contact with your ex at all?
If you are not in touch with your ex in any way whatsoever than that probably means you are not receiving any sort of payment from them. This is important because in order to take a life insurance policy on behalf of your ex, you need to prove that you are financially benefiting from him/her being alive. We mean to say, you must be receiving some kind of financial support—usually either alimony or child support—from your ex in order to be eligible to purchase a life insurance policy for him/her.
Will he/she be financially liable for the life insurance policy?
The thought of being financially liable to make life insurance payments may deter your ex from wanting to allow you to take out a policy. It is important to assure your ex that this is simply not the case. If you are the one who has purchased the life insurance policy, then even if you fail to make payments, your ex will not be liable.
What is the best life insurance company for a single parent?
Taking out a life insurance policy is far from black and white. There are dozens of great life insurance companies in the United States, each of which have their own strengths and weaknesses. There are many factors that go into deciding which life insurance company is best for each situation. The factors one must consider before choosing a life insurance company primarily depend on the life of the person looking to get insured. In this case, your ex.
You will have to consider your ex’s:
- Lifestyle choices
- Drinking/smoking/drug use habits
- Current health
- Family health