Life insurance steps to take if you’re getting divorced.
When you first secured life insurance, it was probably with the intention of creating a financial safeguard for your spouse and children. However, if you are getting a divorce, then you may not know how your ex fits into your coverage. Here are some of the life insurance changes you and your ex need to discuss during your divorce.
- Determine Coverage Needs
If you are the primary breadwinner and you are responsible for making alimony and or child support payments, then you need to consider what your former spouse’s financial situation would look like without your financial contributions. Your life insurance benefits should be enough so that your ex can continue to provide for your children if your alimony and child support checks stopped coming in.
- Discuss How Long You Need Coverage
Alimony and child support are temporary obligations. This is why, if you are responsible for making these payments to your former spouse, you should determine how long you are on the hook for. To ensure that you can provide for your kids during this period, you should secure a term life policy that lasts the same amount of time you are responsible for alimony or child support.
- Change Beneficiaries
Oftentimes, separated couples will change the beneficiaries listed on their life insurance policies. Usually, the policyholder will remove their spouse as a beneficiary, and leave their children to receive the full death benefit. If your children are minors, then you should create a trust where your life insurance benefit will be held until your kids reach a certain age.
These are some of the important life insurance changes you should make if you and your spouse are getting a divorce. Do you have additional questions about your life coverage? If so, then contact the experts at ISU-Wissink Insurance in Culver City, California. Our dedicated team is eager to assist you with all your coverage needs today.