Divorcing? Add insurance into your settlement
If you’re going through a divorce or separation, insurance is probably the last thing on your mind. However, it can play a key role in ensuring financial security for you and your children.
Support payments from your former partner can be essential to help cover the costs of raising children. But those payments could disappear overnight if your ex passes away. Your former spouse’s estate is not obligated to continue support payments if they aren’t stipulated in a divorce agreement or will.
Protect your children’s future
One of the best routes to a secure future is to ensure that your ex-spouse has life insurance coverage that will leave money for you and your children in the event of his or her death.
It should be a condition of your divorce agreement. Without a legal stipulation as part of a divorce, there is no obligation to protect support payments with life insurance.
You need insurance, too
In addition to insurance on the life of your former spouse, you should have coverage on your own life. Your children’s financial future depends not only on your spouse but on you, too. Life insurance coverage can provide the funds needed to support them until adulthood.