Life insurance is an important and a very crucial aspect to be considered during and after divorce. It is most important to have a life insurance policy, to ensure that the children are guaranteed a good life even after divorce and their needs are provided for.
The duration of the life insurance policy would depend on what the policy is meant or intended for. If the life insurance policy was drafted for child support after divorce it can end after the child reaches an age where he/she can support themselves financially.
In some cases life insurance policies can be maintained till the parent wants it. Life insurance can also continue for longer periods in cases of alimony payments, for the dependent spouse.
Divorce brings along with it division of assets and valuables. Life insurance policies hold a lot of importance for divorcing couples as it offers many advantages. With life insurance policies financial obligations can be fulfilled along with guaranteeing support for the children after divorce.
The life insurance policy should mention important aspects which would avoid conflict and disrespect in the long run.
It is very important to designate the owner of the life insurance policy during divorce proceedings and negotiations. It would be the soul responsibility of the owner to mention the names of the beneficiaries of the life insurance policy. It would be of crucial importance to point out the ownership of the life insurance policy from the beginning. Unless clued-up, the life insurance company would not be aware of the fact that the couple is divorced. If the owner of the life insurance policy does not remove the ex-partners name as a beneficiary, the proceeds would directly go to the mentioned partners name in the life insurance policy.
Reduced budgets are a vital aspect during divorce. Life insurance policies can turn out to be quite costly when not taken care of. You can make the life insurance policy an affordable and a feasible option, when you call for life insurance quotes. These quotes would help provide for the children during unforeseen circumstances and disasters. It would be wise to remember that term life insurance premiums are much cheaper than whole life insurance. Term life insurance policies offer a specific time period of protection. These policies are able to cover dependent children till they reach the age of 21 years.
During divorce the decree should mention what the life insurance policy is intended for. The life insurance policy should be able to provide support for the dependent children. The main aim of life insurance policies is to provide for the requirements in the event of death.
You should ensure that the life insurance policy is maintained as per the divorce decree. The custodial parent should be the owner of the policy. The owner has the authority to control the life insurance policy and also maintains the right to name the beneficiaries of the policy.