Oct 25
How a divorce may affect your life insurance needs
When you get divorced you may be faced with new financial obligations including child support or alimony. With these new responsiblities, you may want to consider buying life insurance to protect your child if you weren’t around to help with child support.
Most lawyers will agree upon this as part of the divorce settlement, but usually the amount settled on is only $50,000 – $100,000. We all know that divorce can be bitter, but when there’s a child involved remember the life insurance isn’t for your ex-spouse, but for your child. It’s so affordable these days there is no reason why you shouldn’t have 7-10xs your income in case something were to happen to you.
If your being named the beneficiary on behalf of your child, ask your lawyer to include a stipulation in the divorce agreement requiring your ex-spouse to provide you with an annual confirmation that the insurance is still in force and that you are still listed as the benefiicary.
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