What You Need to Know About Life Insurance for Divorce Settlements
Are you going through a divorce? If so, it is important that you be aware that it is possible to request that your carries a life insurance with you or your children named as the beneficiary. In fact, if there is already a policy in place that has you named as a beneficiary, it is possible to request that the policy remain in place and to have this as a requirement in your divorce decree.
Although it is possible for an ex-spouse to be required to carry a life insurance policy for the other person, the more common arrangement is for the non-custodial parent to be required to carry a life insurance policy for the children. This way, if the non-custodial parent should pass, the children would receive the benefit from the life insurance policy,
When it comes to purchasing life insurance for divorce settlements, there really are no special requirements. This is because you can name any person as the beneficiary when you obtain a life insurance policy. With life insurance for divorce settlements, however, it is a good idea to have insurance information sent to the custodial parent as well. This way, you can prove that you are paying for the insurance coverage and your ex will have the necessary paperwork to obtain the benefits on behalf of the children if you should pass.
If you are the custodial parent and you did not request life insurance coverage in your original divorce decree, it is possible to go back to court in order to request this coverage. In addition, if your ex is required to carry life insurance and is not keeping a policy in place, you can take your ex back to court in order to report the violation.