Marriage is one of those milestones in life where life insurance becomes important. Tying the knot, or even maintaining a committed, long-term relationship, provides a strong reason to buy life insurance – even if you don’t have children. Spouses or domestic partners who own a home together and share expenses need to consider life insurance to pay off their mortgage or cover an outstanding debt in the event one of them dies. For married couples with children, it’s an absolute necessity. If you work outside the home, the value of life insurance is clear. A household that depends on two incomes has to cover the financial loss of one of those incomes. If you work at home caring for your family full time, you still need the protection of life insurance because that work carries a replacement dollar value. In your absence, your family would need to pay for child and home care to replace your loss. Life insurance will take care of those family needs.
During a divorce, life insurance may be court-ordered as a condition of the divorce. This ruling is made to provide alimony or child support and ensure that there will be sufficient funds to support the children should the providing parent die while the children are minors. Review your divorce settlement carefully because the premium you pay on your life insurance policy may be considered alimony.
This section has covered various concerns and prepared you for a healthy discussion on the sensitive but important topic of how to handle life insurance during and after a divorce.
If you are concerned about what will happen to your life insurance policy when you go through a divorce, please consult your attorney or financial representative. Once you have received the legal advice, contact our licensed life insurance agents if you need a new policy or additional coverage. Connect with one of our knowledgeable representatives immediately. Send us an email or call us at (800) 521-7873.