At the time that two people get married, the thought of getting divorced is most likely the further thing from either of their minds. But unfortunately, today’s divorce statistics say that nearly half of those who walk down the aisle today will end up divorced at some point in the future.
Therefore, if the best solution to a couple’s issues is to dissolve the marriage, then there are many things that must also be settled – which of course will include the couple’s finances – and as a part of this, life insurance may become an extremely important component.
Why Life Insurance Can Play An Important Role in a Divorce Settlement
When a couple goes through a divorce, each one of the spouses will have a variety of different needs. Of these needs, income and financial dependency will often play a fairly large role. For married couples, a life insurance policy can often serve as the financial means for providing for income replacement, debt payoff, and/or the payment of final expenses.
Typically, it is the primary wage earner who will obtain the insurance coverage, and it is the spouse who is financially dependent who is named as the policy’s beneficiary – and who will receive the death benefit proceeds should the insured pass away. Having this coverage can allow the dependent spouse the peace of mind in knowing that he or she, and their children, will not need to make a drastic change in lifestyle should something happens to the primary income earner.
When a couple gets divorced, many of these same financial needs will not disappear – even if the family dynamics change. This is especially the case if the couple has small children together. There will still be various debts that need to be paid, and there will also still be similar, future expenses such as the children’s future education costs.
A divorce can also bring about additional needs for life insurance coverage, too. This is because in many divorce cases, a part of the settlement may include the granting of alimony to one spouse, along with a certain amount of child support that is paid to the spouse who is financially dependent upon the other.
In cases such as this, should the income earner who has to pay the alimony and / or the child support payments pass away unexpectedly, then there could be some financial hardships that are faced by the survivors. Here is where life insurance proceeds could be needed.
Things to Consider When Going Through the Divorce Process
When going through the divorce process, it can be extremely difficult. There are so many aspects to sort out. It is important to ensure that nothing is left to chance – regardless of which side of the table you are on.
Some of the key criteria that you need to consider when it comes to life insurance and divorce can include the following:
- If you are the dependent spouse, you should request that the court dictate you to be named as the beneficiary on your ex-spouse’s life insurance policy
- You should also ensure that the amount of the life insurance policy proceeds are adequate to cover the amount of any debt to be paid off and / or any ongoing income needs that you and / or your children may have going forward
- You should also be listed as the owner of the life insurance policy, if possible, as this can help you to ensure that no changes can be made to the policy without your knowledge – or even your permission. For example, the owner of a life insurance policy is the only one who can cancel the policy voluntarily.
It is also important to be sure that the life insurance policy is kept active and in force. This means that the premiums on the policy must continue to be paid. It also means that the “right” type of coverage should be purchased.
In many instances, a permanent life insurance policy may be a good option – especially if the dependent spouse has no plans to remarry and will likely be dependent on alimony for an indefinite period into the future. This is because these policies do not expire after a certain amount of time – provided that the premiums are paid.
On the other hand, term life insurance provides coverage for only a certain period, such as ten years or 20 years. These types of plans may be the better option if you are receiving only child support until the children are grown. Often, term life insurance offers a lower premium in return for death benefit only coverage – especially if the insured is younger, not a smoker and in relatively good health.
Both of these types of policies can be purchased in less than two weeks with a no medical exam option. If you go the traditional route you are probably looking at 30-60 days.
In any case, it is a good idea to weigh out all of your options and to then determine which type of life insurance policy will provide the best benefit, as well as to decide how much in terms of proceeds will be needed – both now and in the future – depending on your current and anticipated financial needs.
Where to Find the Best Fast Life Insurance for Divorce Settlements
When seeking fast life insurance for divorce settlements, first you should find an agent who has dealt with this situation before. There are plenty of agents out there, but many probably haven’t fully gone through the process of navigating a client through this process. The last thing you need is to add stress to your situation by having an inept advisor.
The great thing about is that we have a few agents who are up to date on everything you need to know! But these agents also have an additional leg up on the competition because their portfolio includes more than just one life insurance carrier.
Our agents can be reached by calling 888-229-7522. Our experts will be happy to walk you through how the policies work, which type of policy is right for you, how much coverage you need, and which of our many carriers may best fit in with your specific needs.
We know the last thing you want to start during a divorce is figuring out what needs to happen with life insurance policies owned by you and your spouse. Our main job is to make sure this is done smoothly and efficiently, and our agents have numerous cases similar to this under their belts. We’re here to help.