Frequently Asked Questions Regarding Insurance and Divorce
Q. What are the key issues regarding insurance and divorce?
A. First of all, just as with any other property, you need to determine who will be the owner of your various insurance policies. Secondly, if both spouses and children are covered under a group health plan, how will they be covered after the divorce? Thirdly, consider what will happen to the income from the support order or alimony if the provider should die.
Q. Why is ownership of the insurance policies important?
A. The owner controls the policy and has the right to name the beneficiaries. For instance, your spouse may be the current owner of a life insurance policy that has you named as the beneficiary. This means that your spouse could change the beneficiary at any time, contrary to what you might desire or need.
Q. If my children and I are currently covered under my spouseís group health plan, what are my options after divorce?
A. Divorce is a qualifying event for benefits under COBRA, so named after the act of Congress that created it. But, this is just an interim measure. Ask your attorney whether the divorce settlement can include a provision for health insurance, especially if either spouse can provide it at a reasonable cost through group coverage. Finally, you may need to purchase additional health coverage to protect yourself and your children.
Q. What will happen to the income from the support order or alimony if the provider should die?
A. You should ask your attorney whether the divorce settlement will include a provision for life insurance on the provider, to protect the support order or alimony. If not, you can obtain competitive life insurance quotes here.
Q. How much life insurance is needed to protect the providerís income?
A. Here is a life insurance calculator to figure the amount of insurance needed to replace the providerís income.
Q. How much does life insurance cost?
A. This life insurance estimator searches an industry database and returns your lowest rate.
Q. What health considerations are important in buying life insurance?
A. Your personal and family health history are big factors in determining the rate class under which you can purchase life insurance. You may not qualify for the lowest rate. Ask your agent to evaluate your underwriting profile.
Q. If I need to purchase life insurance, how do I get started?
A. You can find out more about life insurance, and apply online at BudgetLife.
Resources & Tools
ALIMONY PROTECTION -- Courts sometime require a spouse to maintain life insurance to protect his or her former partner’s alimony. The payor is required to maintain insurance for the payee’s benefit.
Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
Divorce & Money: How to Make the Best Financial Decisions
Life Insurance and Divorce
|Your Right to Child Custody, Visitation & Support
Cover Price: $
Your Price: $17.95
You Save: $7.00
"A Plain English Guide to Protecting Your Children"
Author: Mary L. Boland, Attorney at Law
|The information contained on this page is not to be considered legal advice. This website is not a substitute for a lawyer and a lawyer should always be consulted in regards to any legal matters. Divorce Source, Inc. is also not a referral service and does not endorse or recommend any third party individuals, companies, and/or services. Divorce Source, Inc. has made no judgment as to the qualifications, expertise or credentials of any participating professionals. Read our Terms & Conditions.|
"a passion for a better divorce℠" - established in 1996© 1996 - 2013 Divorce Source, Inc. All Rights Reserved.