Saving You Money For Life

Yes, you can take out a term life insurance policy out on your ex-husband….with his permission of course. With any life insurance policy, there must be some sort of “insurable interest”.

Insurable interest is a condition in which the person applying for an insurance policy and the person who is to receive the policy benefit will suffer a genuine loss or detriment if the event insured against occurs. Without the presence of insurable interest, an insurance contract is not formed for a lawful purpose and, thus, is void from the start.

If you have children with your ex and you and your children would suffer a loss (i.e. child support) then there is indeed an insurable interest. However, keep in mind that he has to sign the term life insurance policy even if you are the policy holder or beneficiary. So, you’ll need his permission. Often times, we help people who recently got divorced fufill their divorce decree which usually states that some sort of term life insurance policy is needed for both parties.

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