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The Importance Of Having Life Insurance Coverage On Your Ex-Spouse As Part Of Your Alimony Settlement
My father had recently divorced his wife. They were married for a few years and things didn’t turn out well for various reasons. My dad’s wife decided that getting a life insurance policy for him would be a good idea. Here’s why.
He was getting older. At the time they divorced he was in his upper fifties. He still had a few years left of earning power. If he had passed away prior to a specific date, the alimony he was paying would end. His ex-wife thought it’s important that the lost income via the alimony be replaced with a life insurance plan. This is a court-ordered agreement.
My father was required to carry a life insurance plan to cover his life in case he died before the alimony settlement was completed. This serves his ex-wife very well. She knows that she can depend on his income regardless of whether or not he passes away. Her future income is secured.
Having life insurance in your alimony or as part of your alimony is a great idea. There are nine reasons why you need to have it. We will talk about all nine of these reasons. We’ll go into great detail about what options are available to you when getting life insurance on your ex and why it’s a good idea.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation on Life Insurance For Alimony. Enjoy!
Today’s Topic Overview:
- Your Ex’s Life Is Not Guaranteed
- Losing Child Support Due To Death Can Hurt
- Life Insurance In Your Alimony Is Available To The Mother Or Father
- Alimony Life Insurance Coverage Is Available No Matter What State Your Ex’s Health Is In
- Your Ex Will Have To Agree To The Application Process
- You Must Prove That Your Ex Is Financially Supporting You
- There Are Life Insurance Programs Available For Any Budget
- Custom Designed Alimony Life Insurance
- Always Insure The Policy
- Top 7 Reasons People Buy Whole Life Insurance
- Case Study Examples
- Stories From The Field
- Next Steps
Nine reasons why you need life insurance in your alimony settlement
1. Your ex’s life is not guaranteed
Why have you put together an alimony agreement? The court, you, and your ex, have all made an agreement to a certain level. Sustaining your lifestyle and livelihood is important enough to warrant retaining a monthly amount from your ex. This is dependant upon your ex-spouse actually working and paying every month.
What happens if something happens to your ex before you pass away? How would that affect your lifestyle? Your living capabilities? How would that affect your children’s lives?
This is the very nature and purpose of life insurance. Life insurance is designed to solve economic problems. Most people associate life insurance with things such as paying off a mortgage, debt, or for burial expenses. This is all true.
But the reality is that life insurance can be used in all sorts of uncommon scenarios where an economic threat is a possibility. Your ex-spouse’s death will have an immediate economic impact on your life. Life insurance is designed to solve that problem.
It replaces that economic benefit that you were receiving with a lump sum payment. It’s a part of any good alimony settlement to include a life insurance designated to cover lost financial support for however long it’s agreed upon in the legal document.
If you would like to receive a free, no obligation quote today please get in touch by calling (888) 626-0439. Alternatively you can send us a message to the left or bottom of the screen using our request box.
2. Losing child support due to death can hurt
Imagine for a moment that you lost your child support payments from your ex-spouse. How would that affect your life? Could you continue with the same lifestyle that you live right now?
Would you have to work more? Would you have to be involved with the children less than you are now? Would it be a painful experience to go through? How would having significantly less money affect the people that you love?
When my father divorced my mother, he didn’t pay child support for a very long time. My mom was a single mom going through college to get her nursing degree, trying to support herself and me. At that time I was five years old.
Thank goodness for my grandparents. Without their support, we would have been in really tough economic times. It was almost as if dad had died. We lost his support and mom resented it. She was angry about it for a long time because it affected the way that she wanted to raise me.
Thankfully all that eventually passed. But if your ex-spouse passes it won’t ever go away. It will have a long-standing impact on your children. They will feel it. I can attest to that. When the money stopped showing, things changed.
These are real-life reasons why life insurance is so important. You have to have it. Especially on an ex-spouse who’s providing such a sizable contribution to your economic standing point.
3. Life insurance in your alimony is available to the mother or father
Some people think that alimony is only paid to women. It’s not. You can get a life insurance plan included in your alimony regardless of your ex’s gender. The important factor is not whether your ex is the mother or the father. It’s that they are contributing money towards you. It’s vital that you can prove that.
4. Alimony life insurance coverage is available no matter what state your ex’s health is in
People think that if their ex has had health problems then he can’t qualify for life insurance. That’s not a problem when you deal with the right kind of life insurance agents like us at BuyLifeInsuranceForBurial.com. We are what’s known as life insurance brokers.
We represent a variety of companies. We shop them to see who’s going to provide you with the best combination of price and value of coverage. This is important.
Everybody that we talk to about writing up a life insurance plan has usually had some kind of health problems. They could be mental issues. They could be health problems such as high blood pressure, cholesterol management, or diabetes. They could be major health issues, defined as COPD, insulin dependency, obesity, and other ailments. Heart issues, surgical history and other elements like that.
Despite these health issues we are still able to get these people great coverage at an affordable rate. Let me give you the perfect example. I had a gentleman who applied for life insurance. He was in his late fifties. He had a history of a heart attack and a stent placement.
At the time of application, this history was five years in the past. His blood pressure was under control, and his medications were minimal. He was able to qualify for a rated case with one of my companies. That means that he was able to qualify at a particular type of rate for coverage.
This was important to him. He still needed to have some kind of coverage in place for some of his final expenses (such as his mortgage) in case he died before his retirement. Don’t let your ex’s lack of good health dismay you.
Before you conclude that there are no options, always bring it up with a life insurance specialist like us. Here at BuyLifeInsuranceForBurial.com, we can tell you within 5 or 10 minutes what your most likely option would be. Then you can decide if it makes sense for you.
5. Your ex will have to agree to the application process
By law, life insurance can only be taken out on people who submit to the process. They have to agree to have their medical records pulled. We cannot pull medical records from adults who do not give legal consent.
Your’s and your ex’s health records are kept private unless legal consent is given to allow them to be released. Understand that if you’re interested in life insurance as a protection of your alimony, you will have to agree to the process.
It’s a lot easier to get consent when the alimony life insurance product is court ordered. Your alimony agreement stipulates that your husband must carry life insurance.
This is what my father’s ex-spouse did. She went to a court and required him to carry life insurance for the duration of the alimony payments regardless of his consent. He is forced to keep life insurance. If you’re looking for alimony on an ex-spouse, this is what you’re going to have to do. Unless your ex is just a wonderful person!
If you would like to find out what type of insurance is best for you, give us a call at (888) 626-0439. You’ll speak to an expert in the field who can provide you with a free quote.
Alternatively you can send us your request using the box to the left and bottom of the screen. We will respond to your request within 24 business hours.
6. You must prove that your ex is financially supporting you
This is an important factor in any sort of life insurance purchase. Historically, life insurance used to be purchasable on strangers. Back in the early days of life insurance, complete strangers would take out life insurance on important prominent people. They would then arrange for them to be assassinated and collect the proceeds. Obviously, this was a flaw in the life insurance plan.
To solve the problem, life insurance companies now require what’s called an insurable interest. Insurable interest is defined as the insured person having an interest in the person who pays or owns the insurance. A stranger like myself can’t take life insurance out on you without some sort of economic relationship or some sort of interest in the party.
If your ex-spouse is paying alimony, we would define this as being an insurable interest. You have an interest in buying insurance on him. You want him to stay alive to continue paying alimony. That’s why life insurance is a great idea. It protects against the loss of that flow of income into the future.
If your ex is not making alimony payments then the insurable interest becomes questionable. There may be some companies that still take the case, but most likely if you’re not getting income from them then you’re probably not in contact with them. They’re unlikely to agree to the health stipulations. They won’t consent to have their life underwritten by an insurance company.
There may be circumstances where you may be in contact with them. They’re not making payments, but they’ll still consent to life insurance. A simplified issue whole life will allow for this to happen regardless of the circumstances. Just understand that if you’re in a situation where your ex is not making payments it’s going to be difficult.
7. There are life insurance programs available for any budget
One of the things that you may see as a concern is that the life insurance premiums may not be affordable. Perhaps your ex is a bit older, in their fifties or sixties. They’ve got concerns about being able to affordably keep the life insurance plan on the books.
This may be a valid concern. Here’s the solution to the problem. Make sure that you get the best underwriting advantage. Make sure you work with a broker that could shop around.
Work with somebody like us at BuyLifeInsuranceForBurial.com. We have access to dozens of different companies. We can custom design a plan that will best fit the budget of the person paying for the life insurance.
Most likely your ex-spouse will be paying for their own life insurance. If they have concerns about which way you’re directing them, tell them to give us a call here. We’ll be happy to show them the different rates available to get a quality life insurance plan.
You know that you, as a beneficiary, are protected. But you’ll also have the assurance now that your ex is not paying an arm and a leg for alimony life insurance protection.
8. Custom designed alimony life insurance
There are definitely factors that you have to consider when designing a life insurance plan for an alimony settlement. You have to determine what kind and how much life insurance you have. It’s important that it satisfies the arrangement.
Here are some ideas that I wanted to share with you. Some basic definitions of life insurance that will give you a better idea of what you should ask for under which circumstances.
Term Life Insurance
Term life is perhaps the most widely used type of life insurance. It’s most likely that you will use it in your alimony settlement. Most alimonies last for a period of time, ordained by the court order. The life insurance product will match that period of time to cover that amount of alimony payment.
For example, let’s say your life insurance and your alimony will last 15 years. The perfect product to purchase for that would be a 15-year term life insurance. These plans are designed to last for that period of time.
For the full 15 years, premiums will not increase. At the end of those 15 years, the price of coverage goes up through the roof or cancels out entirely. That’s fine. The policy has met its requirement; covering for the alimony.
Look to the length of time in which your alimony will last. Most likely what you’ll see is that you can buy a term insurance that will match that length of time.
Term Life Insurance Coverage – 10 Year Term – $100,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $250,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $500,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $1,000,000 in Coverage
Permanent Life Insurance
You may also want to consider permanent or universal life insurance for alimony. A permanent product such as whole life or universal life insurance will protect your alimony payments. Permanent plans are designed never to cancel as long as the premiums are continually paid.
No matter what age you get to, the policy pays out. As long as the policy is enforced, which means in most cases that it’s still being paid. You can design it with no limitation. These plans are self-designed so that regardless of the age of the person, there will be a death benefit paid.
Say that your alimony doesn’t describe a length of time after which the payments for alimony are to stop. Or perhaps you want to negotiate a life insurance plan regardless of the length of time that your ex lives.
A permanent plan would be great. It would set up a guarantee that your children, you, or whoever, will receive a lump sum cash payout at the death of your spouse.
These are the two primary types of life insurance plans you have access to. We can help you find these plans regardless of what kind of health the person is in and their budgets. Give us a call at (888) 626-3049, BuyLifeInsuranceForBurial.com. We’ll be happy to help you out.
Rates For $10,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
$150,000 Whole Life Insurance, Life Pay
$250,000 Whole Life Insurance, Life Pay
Top 7 Reasons People Buy Whole Life Insurance
1.Does not cancel due to age or health
Whole life insurance offers long term protection. Unlike other types of plans, whole insurance does not cancel due to age or health. This is especially appealing to those looking for permanent protection.
2.Rates never increase
You don’t have to worry about rate increases with whole life insurance. Premiums remain the same regardless of your age or health situation.
3.You can pay up your whole life insurance
There is a unique characteristic of whole life insurance that allows you to pay up you policy to a point where you don’t have to make payments anymore.
If you design your whole life insurance plan correctly, in many cases this can happen somewhere between 10 and 20 years after you have made consistent payments.
4.Can grow tax-free cash value
Many whole life insurance plans can be designed to offer a cash value which can be borrowed from. This is usually a tax-free provision that is great if you are looking to develop your retirement plan.
5.A permanent solution to permanent problems
Unlike other insurance plans, whole life is permanent. This is the perfect solution for those that are looking for life insurance for the entirety of their life to cover permanent obligations such as burial expenses and estate tax concerns.
6.Exams are optional
Exams used to be required for most life insurance applications, but things have changed due to the competitive nature of the industry. Today you have the choice of taking an exam or doing what is called a non-medical application that does not require an exam.
7.Best use of your premium dollar
Whole life insurance costs more than term insurance, but when you look at the value you get per dollar, it is certainly worth the price. Whole life insurance not only provides reliable protection, it also gives you peace of mind in knowing you will always have life insurance regardless of health issues you may face or how long you live.
Case study examples
Divorce and Rate Rise
Mr. Proudy came to us seeking new final expense coverage after his divorce. He had dutifully paid on a policy for a number of years but right around the time of his separation he had gotten a notice in the mail that said his rates were going to significantly increase.
Mr. Proudy was 60 years old and was on a strict budget so the rate increase was not going to work for his financial situation. He worried if he got a new policy that it would end up costing him more than the policy he currently had, but thought it was worth getting in touch with us to find out what his premium might look like.
The good news is we were able to shop a number of providers to find a plan that met Mr. Proudy’s budget and final expense needs. He was very pleased with the offer and was glad that he had gotten in touch.
Though we can’t guarantee final expense coverage for every applicant, we do our best to shop a number of providers to meet our client’s specific needs.
Promotion at Work
A young woman came to us after she had received a promotion at work. She was looking to add to her existing policy with the knowledge that an increase in salary would also mean an increase in her financial obligations. She wanted to ensure that her children didn’t have to worry about her debt should she die unexpectedly.
The only problem was that this woman was diabetic. She took up to 50 units of insulin a day to manage her blood sugar and she worried this would have an effect on the rate of her new policy.
Shopping a number of providers that work with diabetics, we were able to get this young woman quality, first day coverage at an affordable price. Though we can’t guarantee the same outcome for every client, we do our best to find coverage regardless of health conditions.
9. Always insure the policy
The alimony life insurance policy needs to remain enforced. This is an important factor. As the old saying goes, trust, but cut the cards. Whilst the court ordered requirement may be out there for the ex-spouse to carry life insurance, there’s never a guarantee that they will actually keep it.
If they die without it enforced then you’re in trouble. Despite the legal document saying that you’re okay, you need to have insurance on your ex. Luckily there are some simple tips you can follow in order to ensure that the life insurance policy is still in force.
Be listed as a second notice on the policy if a lapse occurs. You’ll get a letter in the mail or an email from the insurance company giving you a heads up if payments are behind or missed. This is a great way to stay sure and on top of things.
You can also be placed on the policy as somebody allowed to call in and ask questions to make sure that everything is in good order. This is a good way to ensure that beneficiaries remain the way that you want them. You’d know if things were changed at some future date by decree of the ex-spouse.
Make sure that you do these things. I hate to be tedious about this, but you have to make sure that everybody does their part to uphold the agreements.
Stories from the field
Back in 2014 I met Mr. Sanders, a nice gentleman who came to me for a small burial plan. While we were working on getting his plan in place he told me about his mother who was 81 years old and had just recently had heart surgery. Mr. Sanders was worried about his mother because he felt she didn’t have enough final expense coverage. He asked if I would speak with her and I agreed.
A couple of days later I arrived at Mrs. Sanders home. We sat down to talk and I learned that she had worked all her life up to age 80 at a dry cleaner before being forced into retirement due to her heart condition.
Interestingly enough, she actually did have life insurance, but the particular product she had would go up in price periodically and she was no longer able to afford the premium. Witih a little more investigating I also discovered that the plan she had would cancel when she turned 90.
When she had taken the plan out some 20 years prior, she was paying only $50 a month for $40,000 in coverage. However, over time the rate had increased to $300 a month – a rate which she simply couldn’t afford.
Clearly, I felt bad for this nice lady who had worked hard all her life and was taken advantage of by an insurance company that offered subpar coverage that she could no longer keep.
Unfortunatly, due to her recent heart problems, she was in a position that prevented her from qualifying for a whole life insurance plan. What she could qualify for would require a 2-year wait period, meaning she would not have coverage for 2 years.
This woman had made a wise decision to get life insurance in place. However, the long-term damage caused by the wrong kind of life insurance can cause dramatic effects. At the age of 81 she was left with two very undesireable options. Either pay the high rate or go through a 2 year wait period to get new coverage.
The moral of this story is that you should always investigate the type of insurance policy you get. Be sure you know if there will be rate increases and if there are any stipulations about cancellation when a certain age is reached.
This is why we here at Buy Life Insurance for Burial work with different life insurance companies so we can figure out which one is going to give you the best price for the best amount of coverage.
We want you to be able to keep your life insurance for the long term if that is your goal.
You’re interested in life insurance protection for your alimony. You would like us to help you shop the most competitive carriers’ coverage available. Here’s what you need to do next.
Visit my website. You can go to buylifeinsuranceforburial.com and grab a free quote. I do ask that you message me first. You can do that by clicking the contact box; the one at the top or the bottom, and send me a quick message.
Give us a call at (888) 626-0439. We will be able to help show you the options that are available to you within 5 to 10 minutes. We’ll give you an idea of what your price would be, how the coverage would work, and what the process would be to get the ball rolling.
I hope you have found this article useful in your search for quality life insurance for alimony. If you have any remaining questions or would like to receive a free quote, please call us at (888) 626-0439 or send us a message using our request box.
Getting life insurance is one of the most important decisions you will make in life. It’s impact ont he lives of those you leave behind is immeasurable. I hope you will make the decision today to get in touch and find out more about what you might qualify for.
Thanks for reading.