Divorce involves many questions important to your future, such as whether you will receive alimony and child support. However, some divorcing couples do not consider establishing life insurance for one of the spouses involved.
The question of life insurance in divorce is not something to brush aside. In fact, a judge may require that one spouse take out a policy or hold on to an existing policy and not change it.
Reasons to have a life insurance policy
In the event your ex should unexpectedly die, you will likely lose out on any further spousal support. However, Policy Genius explains that if your former spouse has a life insurance policy, he or she can name you as a beneficiary. After the death of your ex, the policy will pay out benefits to you.
Life insurance can also help if you receive child support or retirement money from your ex. With a policy in place, the benefits can help ensure that you do not suddenly lose funds to help raise your children or maintain your retirement.
Taking out a policy yourself
Sometimes a life insurance beneficiary will take over management of the policy. Some divorcing spouses do this to prevent the other spouse from changing the policy or possibly losing it due to missed payments or other breaches of the policy agreement.
Keep in mind that divorce judges do not automatically mandate that a spouse gets or keeps life insurance. You may have to initiate talks to have your ex retain a life insurance policy as part of a divorce settlement. Since divorce cases differ, be sure that this is the best option for you and your family.