After divorce, you may not consider the importance of having a life insurance policy on your ex-spouse. If you depend on court-appointed financial support, life insurance ensures you have an alternate means of support if your spouse dies.
If either of the following scenarios fits your living situation, consider speaking to your ex about obtaining a life insurance policy.
You collect alimony from your ex-spouse
Courts may award you temporary, short-term or permanent alimony. In any situation, a life insurance policy ensures you have access to funds if your ex-spouse dies before the termination of alimony. If alimony is a lump sum paid over time, you can purchase a policy for the total expected amount.
Your ex-spouse pays you child support
Raising children is costly, so you may depend on child support to provide the best life for them. Purchasing a life insurance policy on your ex-spouse guarantees that you have access to money to continue providing the same quality of life for your kids.
While life insurance does not take over the monthly deposits, it does pay you a lump sum upon distribution. If the policy amount is equal to or greater than the expected lifetime child support total, you should consider making monthly withdrawals from the account to replace the funds paid by your ex. With planning, funds in the policy can last until your children reach adulthood.
If you decide that obtaining life insurance on your ex-spouse is necessary, consider purchasing the policy yourself. By owning the policy, you ensure timely payments prevent a lapse in coverage, and you can guarantee that beneficiary information stays the same.