Divorce is a sad reality for many married couples. With divorce rates seemingly climbing by the day, it is safe to say that marriage is often no longer until “death do us part”. Despite the statistics, couples continue to walk down the aisle, bringing two lives together with all the happiness, comfort- and financial obligations that may befall them.
When they marry, many couples chose to purchase life insurance. A couple may opt for life insurance to cover existing and anticipated debts- in order to take the burden off each other when they pass on. If and when a couple divorces, life insurance will probably be considered as a part of the final divorce settlement. Because they are purchasing together, many couples choose to list each other as beneficiaries on their life insurance policy. After a divorce, you may have the urge to take your name off of a joint life insurance program, but there may be good reasons to continue to stay on the plan with your ex-spouse.
If you do choose to opt out of your joint life insurance plan with your former spouse, it may make sense for you to consider keeping the plan with the spouse who is primarily responsible for raising the children. If he or she passes on, the children will need to be provided for- and will hopefully be taken care of by this life insurance policy. The divorce decree should include the funds to pay for this life insurance policy. This way, the spouse receiving alimony can make sure the premiums are paid and he or she is financially protected with life insurance.
If you are looking to make a change to your life insurance policy in the near future,
Eastern Insurors can help. We are an independent insurance agency that can walk you through the difficult reality of divorce, and make you come out of it stronger than before. Visit our Virtual Insurance Office at
www.insurance-nj.com. Once there, you can learn about your options, or get a
free online quote on life insurance.
