Divorce and Insurance

Divorce and insurance is an often overlooked issue.

So you've finally reached an agreement with your ex on the alimony amount and the responsibilty for paying for the children's education.

But what if your ex dies prematurely?

There is no requirement of the estate to continue paying you. There is a strong possibility that any income to you stops.

Life Insurance can protect you and your children. It is recommended you insure your ex spouse to protect your income if he or she were to die while still obligated to pay you.

You become the owner. You are also the beneficiary. Your ex is the insured. It's generally a good idea that you pay the premiums as well, to ensure that the payments are paid.

Typically Term Insurance is used to cover this risk.

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