Welcome back and thanks for joining us again for the rest of this discussion on spousal and child support insurance. As we explained in the previous article, it’s possible, and often recommended, that you ensure your spousal and child support payments. Between job loss, disease and injury, and untimely death, there are many reasons why someone would suddenly no longer be able to make those important payments that their kids and ex rely on for survival. So how do you set it up? Here’s the break down:
Insuring support payments through life insurance:
You can secure your child support and spousal support payments with a life insurance policy. Setting up a life insurance policy to cover any support obligations incurred during your divorce is a great way to ensure that your children’s future needs will be always be met. Even in the face of tragedy or disaster, knowing that your life insurance policy has your loved ones covered can make a big difference.
However, it’s important to know what the limitations are in this situation. For example, not all divorce agreements are created equal. Some allow the custodial parents to take out life insurance policy on the noncustodial parent, while others require the noncustodial parent to pay for a policy on their life, and then name the custodial parent as beneficiary. If your divorce agreement is the latter, then be sure that your agreement also specifies that you receive regular proof that the policy is still in effect, and hasn’t been cancelled without letting you know.
Insuring support payments through disability insurance:
You can also secure the child support payments you receive with disability insurance. If you become disabled, aren’t able to work anymore, and have no disability insurance, the court will modify your alimony and child support obligation by reducing, or even eliminating, the payments you’re required to make. With a disability insurance policy, you will receive monthly benefit payments in the event of a disability, which means you’re more likely to be able to continue paying alimony and child support.
Unlike life insurance, however, you cannot own a disability insurance policy on someone else. So it’s critical to have this spelled out in your divorce agreement, if it’s something you or your ex want to put in place for the future. Just like the conditions of the life insurance policy, if you’re required, per the agreement, to take out a disability insurance policy and pay the premiums, your ex will probably want to receive regular proof that the policy is still active.
Do you think insuring your support payments is right for you?
Paying for full coverage on your car insurance can feel like a huge waste of money if you’re a careful driver and you’ve never been in a crash. But on the day that someone runs a red light and T-bones you in an intersection, you’ll be glad you did. In the same way, it can feel like a waste of your hard-earned money to pay for insurance on the spousal and child support payment you already have to make. But knowing your kids are taken care of, no matter what, can make all the difference to your peace of mind!
If you have any questions about spousal or child support, or what’s best for your family’s future, talk to your experienced family law attorney today. The attorneys at The Kronzek Firm have been handling these types of divorce-related matters for decades, and can help you navigate your divorce as well. If you need advice, or would like a properly drafted life insurance provision in a separate agreement on your behalf, contact us today at 866 766 5245. We can help you.