Life insurance changes to make after filing for divorce.
Most people secure life insurance so they can continue providing for their spouse and children in the event of their unexpected death. However, if you are getting a divorce, then you may not know how you and your ex should manage your life insurance benefits. Here are some of the steps you should consider taking.
- Discuss How Long You Need Coverage
Alimony and child support are temporary obligations. This is why, if you are responsible for making these payments to your former spouse, you should determine how long you are on the hook for. To ensure that you can provide for your kids during this set period, you should secure a term life policy that lasts the same amount of time you are responsible for alimony or child support.
- Mandate Who Will Pay Premiums
If your ex has a life insurance policy that will provide for you and your children in the event of their unexpected death, then you need to make sure that they continue to pay their premiums. If you are concerned about the possibility of default, then you should speak to your lawyer about having payment responsibility written into the divorce agreement to ensure that they don't lose the policy.
Oftentimes, separated couples will change the beneficiaries listed on their life insurance policies. Usually, the policyholder will remove their spouse as a beneficiary, and leave their children to receive the full death benefit. If your children are minors, then you should create a trust where your life insurance benefit will be held until your kids reach a certain age.
These are some of the steps that you should take to manage your life insurance after a divorce. Do you have more questions about your life insurance coverage? If so, then contact
the experts at Club Agency Insurance Brokerage
in Garden City, New York. We are ready to assist you with all your personal coverage needs today.