Most people understand the need and benefit of having insurance to protect their income from disability or loss of life. If your household income depended on a spouse’s salary and they passed away unexpectedly, you’d want to have life insurance coverage to replace that income. If you became unable to work for a period of time, you would also value disability protection to provide income during that time-frame. You need to consider if you’re divorced and your household income includes child support to care for your children or spousal support to provide maintenance while you secure other means of income.
If your ex-husband passes away or becomes disabled long- term and he doesn’t have the proper insurance protection, those income payments from him will cease. Your ex may have group coverage available through his employer, but remember that if his employment status changes, the insurance coverage may change as well. Similarly, he may have the option to lower current coverage to save out- of- pocket costs.
Make sure that you and your lawyer negotiate an appropriate amount of coverage to be required in the final divorce settlement agreement. What amount should you try to negotiate? That includes figuring the approximate time that alimony and child support will be paid out and how many children you have. Other factors such as liabilities, group coverage, and long-term goals such as college expenses for the children can play a part in calculating an appropriate level of protection as well. Be sure that you consult a Certified Divorce Financial Analyst™ for needs based on your personal circumstances.
Not only checking if you have the coverage, but also verifying that you are the beneficiary of the life policy is important. Your divorce attorney should be able to include in your divorce agreement that you must receive evidence of your ex’s insurance protection; particularly coverage with you as the beneficiary.
The consequences of not making sure your ex-husband has enough life and disability insurance to protect you and your children could affect you for many years to come. Requiring life and disability protection with you as the beneficiary can be included in your divorce settlement. This is an important consideration that we see too often overlooked; especially if you’re currently in an amicable relationship, it’s hard to foresee how things may change later. It’s best to lay the groundwork for expectations now. If you don’t get this into the initial agreement it can be extremely difficult, if not impossible, to change after the divorce is finalized.
As the owner of a financial company for the past 12 years, Travis witnessed many women take a backseat in the financial area, only to end up completely lost and overwhelmed when they lost their husbands to divorce or death. Out of this experience grew 360 refresh®, a unique business designed to guide women through divorce and recovery in all aspects of life. 360 refresh® assists in finding balance in areas such as psychological, physical, financial/legal, and self-improvement. At home, Travis and his wife stay busy chasing their two young sons around and are expecting another child soon. www.360refresh.com
About My Turn Your Turn
Visit us on our official website at www.MyTurnYourTurn.com and sign up for your free 30-day trial. My Turn Your Turn is a co-parenting website that helps organize families and improve communication between co-parents sharing children due to divorce or separation. Specializing in co-parenting tools and shared parenting resources including an online custody calendar, online divorce journal, child support tracker and more for blended families, single parents and high conflict divorce cases.